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Livelihood Shocks and Coping Strategies: An Empirical Study of Bangladesh Households

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  • Rashid, Dewan Arif
  • Langworthy, Mark
  • Aradhyula, Satheesh V.

Abstract

Households plan strategically for facing risks associated with livelihood security. Choosing a particular set of coping strategies depends on a number of factors including the types of crisis households face and options available. Often, poor households risk future income generating capacity for maintaining current food consumption. This paper examines strategies used by rural households for coping with the shocks and investigates whether there is any distinctive pattern in adopting these strategies. Using a cross section data set covering 1600 households from the northwestern Bangladesh, we estimate a trivariate probit model for explaining the adoption of coping strategies. Results indicate that choice of coping strategies depend on diversity and stability of household income sources. Households with higher education have greater access to stable incomes sources and have more income sources, and so are less likely to adopt ex-post coping strategies. Households with more assets are more likely to divest assets or obtain secured loans rather than rely on unsecured loans. Wealthier households are not less likely to adopt current adjustment strategies, suggesting that there is a general sequence of coping strategies that all households follow, irrespective of the assets they own.

Suggested Citation

  • Rashid, Dewan Arif & Langworthy, Mark & Aradhyula, Satheesh V., 2006. "Livelihood Shocks and Coping Strategies: An Empirical Study of Bangladesh Households," 2006 Annual meeting, July 23-26, Long Beach, CA 21231, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21231
    DOI: 10.22004/ag.econ.21231
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    References listed on IDEAS

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    1. Christian Jette, 1996. "Diversification as a Risk Management Strategy in an Andean Agropastoral Community," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1329-1334.
    2. Corbett, Jane, 1988. "Famine and household coping strategies," World Development, Elsevier, vol. 16(9), pages 1099-1112, September.
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    2. Kailash Chandra Pradhan & Shrabani Mukherjee, 2018. "Covariate and Idiosyncratic Shocks and Coping Strategies for Poor and Non-poor Rural Households in India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(1), pages 101-127, March.
    3. Asif Ehsan, Syed Mortuza & AKTER, SHAHARIA, 2020. "Vulnerability Resilience and Female Labor Force Participation: Evidence from Shocks on Rural Households in Bangladesh," MPRA Paper 118270, University Library of Munich, Germany.
    4. Nayeem Sultana & Md. Rayhan, 2012. "Coping strategies with floods in Bangladesh: an empirical study," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 64(2), pages 1209-1218, November.
    5. Raghbendra Jha & Hari K. Nagarajan & Woojin Kang & Kailash C. Pradhan, 2014. "Panchayats and Household Vulnerability in Rural India," ASARC Working Papers 2014-08, The Australian National University, Australia South Asia Research Centre.
    6. Mohammad Mazharul Islam & Mohammad Muzahidul Islam & Haitham Khoj, 2022. "Coping Mechanisms and Quality of Life of Low-Income Households during the COVID-19 Pandemic: Empirical Evidence from Bangladesh," Sustainability, MDPI, vol. 14(24), pages 1-24, December.
    7. Fahmida Dil Farzana & Ahmed Shafiqur Rahman & Sabiha Sultana & Mohammad Jyoti Raihan & Md Ahshanul Haque & Jillian L Waid & Nuzhat Choudhury & Tahmeed Ahmed, 2017. "Coping strategies related to food insecurity at the household level in Bangladesh," PLOS ONE, Public Library of Science, vol. 12(4), pages 1-17, April.
    8. Victoria Kudaisi, Bosede & Akanni Olomola, Philip, 2021. "Effects Of Income Shock On Consumption Among Public Workers In Southwest Nigeria: Evidence From The 2016-2018 Economic Crisis," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 8(2), pages 65-88, June.

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