Rural households' livelihood transitions in China: processes, drivers and outcomes

Purpose - This study aims to comprehensively examine the transitions in household livelihood strategies within rural China, including the underlying processes, drivers and outcomes. Design/methodology/approach - This study uses two waves (2010 and 2018) of longitudinal data from the China Family Panel Studies (CFPS), employing latent cluster analysis, regression models and cumulative distribution function within a dynamic household livelihood strategy framework. Findings - The results show that (1) households’ livelihood strategies can be categorized into four distinct types, i.e. agricultural dominated, agricultural dominated with non-agricultural supplementation, non-agricultural dominated with agricultural supplementation and employment oriented. (2) During 2010–2018, approximately 60% of households underwent transitions in their livelihoods, encompassing both upward and downward trajectories, with a prevalence of upward transitions. (3) Various forms of livelihood capital significantly contribute to upward transitions, while the availability of land resources and exposure to shocks impede the potential for upward mobility. (4) The transition towards non-agricultural livelihood strategies by households leads to a notable enhancement in their livelihood welfare. Research limitations/implications - In the context of urbanization, industrialization and globalization, rural areas in China are undergoing a gradual socioeconomic transformation, which has also led to changes in rural households’ livelihood strategies. Nevertheless, a dearth of empirical investigation exists regarding the dynamics of rural households’ livelihood strategies, the determinants behind such transitions and the resulting outcomes on their livelihoods. A comprehensive understanding of livelihood transitions can provide valuable insights for policymakers in their endeavors to promote rural revitalization in China. Originality/value - Based on the nationwide representative datasets in China, it examines the micro-level livelihood transitions of rural households within the broader context of socioeconomic transformation that presents both opportunities and challenges, as well as vulnerable contexts, shaped by various government policies. This exploration would offer valuable theoretical and empirical evidence to advance our understanding of the process, driver and outcome of rural households’ livelihood transition in developing countries.