Subsidy-Dominated Non-Farm Income Improves Herder Household Livelihoods and Promotes Income Equality in North Tibet, China

Abstract

The non-farm sector is critical in supporting sustainable economies, alleviating poverty, and improving human well-being. However, the drivers of non-farm income and how it impacts income inequality remain underexplored, especially in alpine regions worldwide. Herein, we conducted face-to-face interviews using semi-structured questionnaires with 665 herder households across 54 villages in North Tibet from 2018 to 2020. We assessed the role of non-farm income in household economies and explored the determinants of household income using basic statistical methods, Gini coefficient analysis, and mixed-effects modeling. Our results showed that non-farm income accounted for approximately 80% of the total household income. It contributed to lower income inequality in rural North Tibet, with government subsidies playing a more vital role than wages and business income in this reduction. Results indicated that the number of migrant workers was the most significant positive predictor of both non-farm income and total household income, whereas livestock units dominated farm income. Given the modest contributions of livestock-derived income (~5%) and wage and business revenues (~18%) to overall earnings, this study suggests that policies should primarily focus on strengthening rural livestock husbandry. Simultaneously, it is imperative to foster environments that encourage entrepreneurship and non-farm activities and to expand access to skill-based training. Such initiatives and measures are essential for diversifying livelihood strategies and improving resident welfare in North Tibet.