Determinants of Rural Income Diversification among Farming Households: 25084
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https://doi.org/10.35716/IJED-25084
Author: Harsh Dagar, Jatinder Sachdeva, and Priya Brata Bhoi
Author Address: Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141004 (India)
Abstract
The study examined the determinants of income
diversification among farming households in Punjab, with a focus on urban
proximity. Using a multi-stage sampling method, data were collected from 90
households across six villages near Ludhiana. The Simpson Diversification Index
was used to quantify income diversification, and exploratory and stepwise
regression analyses were used to identify key determinants. The research findings
indicated that proximity to urban centres significantly enhanced income diversification
opportunities, particularly for lower-income households, by providing access to
non-farm employment and markets. Factors such as proximity to the urban centre,
education level, and farm size played an important role in determining income
diversification. The study emphasised the need for targeted policies to promote
non-farm employment and support small farmers.
Keywords
Livelihood
strategies, Simpson diversification index, stepwise regression, urban
proximity.
JEL Codes:
C21, C52, Q12, R12.