Determinants of Rural Income Diversification among Farming Households in Punjab
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Author: Harsh Dagar, Jatinder Sachdeva and Priya Brata Bhoi
Author Address: Research Scholar, Dairy Economics, Statistics and Management, ICAR-National Dairy Research Institute, Karnal-132001 (India), Principal Agricultural Economist, Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141004 (India),
Keywords: Livelihood strategies, Simpson diversification index, stepwise regression, urban proximity.
JEL Codes: C21, C52, Q12, R12.
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.
Description
Indian J Econ Dev, 2026, 22(1), 32-41
https://doi.org/10.35716/IJED-25084
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