## 2 Literature Review
### Factors Affecting Household Income
#### 2.1.1 Household Level Factors Affecting Household Income  
Four key factors affect household income at the individual level. These factors are demographic aspects, education and human capital, employment status and job nature, and various other income dynamics. Each of these elements plays a crucial role in shaping the financial stability and growth potential of households.  
_Demographic factors_, encompassing age, education, health, and household composition, are central to understanding household income dynamics. Changes in household composition, such as marriage, childbirth, or divorce, significantly influence income, impacting resource division and dependent numbers ([PERSON] and [PERSON], 1998). Age and gender also play pivotal roles, with female-headed households and younger workers experiencing distinct income mobility patterns ([PERSON] and [PERSON], 2015; [PERSON] and [PERSON], 2023). Additionally, variables such as household size and presence of elderly members influence income growth ([PERSON] et al., 2014; [PERSON] and [PERSON], 2017).  
_Education_ and human capital investment also significantly influence household income mobility. The education level of household heads, particularly in terms of secondary and tertiary education, plays a critical role in determining income mobility due to better accumulation of human capital, adaptability, and enhanced income growth opportunities ([PERSON] and [PERSON], 2015; [PERSON] and [PERSON], 2023; [PERSON] and [PERSON], 2017; [PERSON], 2009).  
_Employment_ status and job nature are crucial determinants of household income, with changes such as job loss or transitions between full-time and part-time work having a direct impact on income levels ([PERSON] and [PERSON], 2008; [PERSON], 2000). The type of employment, be it temporary, permanent, or self-employment, significantly influences income mobility, with each employment status offering different levels of security and growth potential ([PERSON] and [PERSON], 2015). The occupational type, specifically in the context of urban-rural dynamics, plays a significant role in determining income levels.  
Higher income is often associated with off-farm activities, indicating a shift from traditional agricultural sources to more diversified income streams ([PERSON] et al., 2005; [PERSON] and [PERSON], 2013). Additionally, the occupation of the household head, particularly in managerial or administrative roles or employment in government or public institutions, is associated with higher income levels ([PERSON] and [PERSON], 2017).  
_Other income dynamics_ such as initial income level, different income sources, and expectations also play a crucial role in household income changes. Initial income of the household head is a primary variable influencing per capita income changes, with variability in real income occurring due to different sources, including labour and capital income ([PERSON] and [PERSON], 1994; [PERSON] et al., 2003). Furthermore, the type of income, whether from wages, property, or social benefits, contributes to overall income mobility, with social benefits often stabilising income during economic fluctuations ([PERSON] and [PERSON], 2008).