Developing an Indicator Framework for Inclusive Circular Economy Livelihoods among Informal Waste Workers: Evidence from Kathmandu Valley, Nepal

Informal waste workers (IWWs) play an important role in supporting circular economy systems, yet they face continuous political marginalisation, psychological stress, and socio-economic vulnerability. Existing livelihood frameworks fail to capture governance, dignity, and psychological well-being factors specific to waste workers. This study develops and tests an Integrated Livelihood Resilience Framework (ILRF) that includes political capital and psychological capital as separate factors in determining livelihood resilience. The study used a mixed-methods approach. The study surveyed 400 IWWs in the Kathmandu Valley, Nepal, and included in-depth qualitative interviews. The data were analysed using Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), and Structural Equation Modelling (SEM). Preliminary findings show that political exclusion remains common, reliance on informal social networks is significant, and psychological resilience seems important for sustaining livelihoods. The validated framework provides indicators for measuring political and psychological capital, supporting evidence-based policy for inclusive circular-economy transitions. This study contributes to both theoretical and practical understanding of IWW livelihoods and informs just transition policies in Nepal and, similarly, in the Global South.