Rural livelihood studies in developing countries usually depend on household members’ own recollection of their income-generating activities, including extraction of environmental products, yield of agricultural crops and livestock products, wage and casual labour income, and income from business activities. In this study we examine discrepancies between activities and associated incomes
(cash and subsistence) reported by sample households through interviews conducted at the end of a one-year recall period and based on daily records of livelihood activities made by the same households throughout the entire year. The study is based on data from two villages in different parts of Tanzania. Differences between results obtained using the two data collection methods vary
between activities and product categories but are in some cases considerable. This has important implications when such data are assumed to reflect the rural economic reality and thus used for policy formation and implementation.