Household Income Diversification Strategies, Welfare and Child Nutrition in Uganda: A Dynamic Panel Analysis 2005–2020

James Mukoki, Ibrahim Mukisa, Kurayish Ssebulime, Edward Musoke
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Abstract

Many of the studies on households and people’s welfare dynamics in Uganda have been preoccupied with poverty lines and welfare indices estimation, particularly at the macro level. Little attention has been paid to the impact of livelihood diversification strategies on household welfare and health outcomes (i.e. child nutrition) for both rural and urban dwellers. Thus, this study examines the impact of livelihood (i.e. income) diversification strategies on household welfare and child nutrition. Eight waves of the Uganda National Panel Survey (2005/06–2019/20) dataset collected by the Uganda Bureau of Statistics (UBOS) with the support of the World Bank are utilised for this purpose. An instrumental variable approach implemented through a two-stage residual inclusion (2SRI) technique is applied in which alternative correlated random effects (CRE) and fixed effects models are estimated, these two techniques enabled us to address the endogeneity problem associated with livelihood diversification by including a generalised residual among the regressors and also including appropriate list of instruments in the latter. The findings from the study show that indeed diversified households enjoy higher levels of consumption and thus livelihood diversification strategies are welfare-improving. Second, livelihood diversification is also found to improve child nutrition status. By and large, the results point to the fact that households should at least run a diversified means of livelihood since this offers a feasible way of shielding households against risks and also coping and adapting to shocks among rural and urban poor households.
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乌干达的家庭收入多样化战略、福利和儿童营养:2005-2020 年动态面板分析
关于乌干达家庭和人民福利动态的许多研究都专注于贫困线和福利指数的估算,特别是在宏观层面。人们很少关注生计多样化战略对城乡居民家庭福利和健康结果(即儿童营养)的影响。因此,本研究探讨了生计(即收入)多样化战略对家庭福利和儿童营养的影响。为此,本研究采用了乌干达统计局(UBOS)在世界银行支持下收集的八次乌干达全国面板调查(2005/06-2019/20)数据集。通过两阶段残差包含(2SRI)技术实施的工具变量方法,对替代相关随机效应(CRE)和固定效应模型进行了估计,这两种技术使我们能够通过在回归因子中包含广义残差以及在固定效应模型中包含适当的工具列表来解决与生计多样化相关的内生性问题。研究结果表明,多元化家庭确实享有更高的消费水平,因此生计多元化战略能改善福利。其次,生计多样化还能改善儿童营养状况。总的来说,研究结果表明,家庭至少应经营多样化的谋生手段,因为这为农村和城市贫困家庭抵御风险、应对和适应冲击提供了可行的途径。
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