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Income Diversification in Rural Households: Measurement and Determinants


  • P S Sujithkumar


This study attempts to measure the income diversification among different sections of rural households based on the data collected from three villages of K V Kuppam Block in Vellore district of Tamil Nadu. Income diversification was measured by Simpson index and the prominent factors that determine income diversification were identified by using the OLS regression. It is argued that there is a significant difference in the income diversification among different groups of rural households with respect to their major income source, total income, per capita income and landholdings. But, the difference in income diversification is not significant with respect to the community they belong. Assets such as cultivating land and cattle determine the income diversification. Household demographic characters like gender composition of the household, sex and age of the head of the household and the number of workers in the household influence income diversification.

Suggested Citation

  • P S Sujithkumar, 2008. "Income Diversification in Rural Households: Measurement and Determinants," The IUP Journal of Agricultural Economics, IUP Publications, vol. 0(3), pages 63-71, July.
  • Handle: RePEc:icf:icfjag:v:05:y:2008:i:3:p:63-71

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