Keywords
Livelihood Diversification
Rural Livelihoods
Regression Analysis
How to Cite
Abstract
Livelihood diversification plays an important role in influencing rural household income, especially in regions where small landholdings, production risks, and limited employment opportunities constrain agriculture. This study examines the effect of livelihood diversification strategies on household income using primary data collected from rural areas of Doda and Kishtwar districts of Jammu and Kashmir. A total of 396 households were selected using purposive, multistage sampling to capture diverse livelihood conditions. Households were categorized into different livelihood strategies based on their engagement in farm, non-farm, and off-farm activities. Descriptive results show that agriculture remains the dominant livelihood source, with 55% of households relying exclusively on on-farm activities. This is followed by households combining on-farm and non-farm activities (31%), while 11% engage in both on-farm and off-farm activities. Only a small proportion of households (1.52%) adopt highly diversified strategies involving on-farm, off-farm, and non-farm activities, indicating limited higher-order diversification in the study area. To assess income effects, a multiple linear regression model is employed with the natural logarithm of total household income as the dependent variable. Livelihood diversification strategies are included as key explanatory variables along with household, asset, and location-specific controls. The results reveal that diversification strategies involving non-farm activities significantly enhance household income compared to farm-only strategies. In contrast, diversification limited to off-farm activities alone does not yield significant income gains. Among the control variables, landholding size and livestock ownership are significant determinants of income, while demographic factors such as age and education have a limited influence. Overall, the findings highlight that income gains from diversification depend on the type and combination of activities adopted. Policy efforts should therefore move beyond agriculture-centric approaches and promote access to higher-return non-farm livelihood opportunities to strengthen rural income growth and resilience.
References
1. Abebe, T., Chalchisa, T., & Eneyew, A. (2021). Research Article the Impact of Rural Livelihood Diversification on Household Poverty: Evidence from Jimma Zone, Oromia National Regional State, Southwest Ethiopia. The Scientific World Journal, 2021(1), 3894610. https://doi.org/10.1155/2021/3894610
2. Ahmed, M. T., Bhandari, H., Gordoncillo, P. U., Quicoy, C. B., & Carnaje, G. P. (2015). Diversification of rural livelihoods in Bangladesh. Journal of Agricultural Economics and Rural Development, 2(2), 32-38
3. Alobo Loison, S. (2015). Rural livelihood diversification in sub-Saharan Africa: a literature review. The Journal of Development Studies, 51(9), 1125-1138. https://doi.org/10.1080/00220388.2015.1046445
4. Birthal, P. S., Joshi, P. K., Roy, D., & Thorat, A. (2013). Diversification in Indian agriculture toward high‐value crops: The role of small farmers. Canadian Journal of Agricultural Economics, 61(1), 61-91. https://doi.org/10.1111/j.1744-7976.2012.01258.x.
5. Basu, J. P. (2014, December). Agroforestry, climate change mitigation, and livelihood security in India. New Zealand Journal of Forestry Science, 44, 1-10. https://doi.org/10.1186/1179-5395-44-S1-S11.
6. Chand, R. (1996). Diversification through High Value Crops in Western Himalayan Region: Evidence from Himachal Pradesh. Indian Journal of Agricultural Economics, 51(4), 652-663.
7. Deogharia, P. C. (2018). Diversification of agriculture: a review. Journal of Economic & Social Development, 15(1), 46-59.
8. De la O Campos, A. P., Admasu, Y., Covarrubias, K. A., Davis, B. K., & Gonzalez, A. M. D. (2025). Reassessing transformation pathways: Global trends in rural household farm and non-farm livelihood strategies with a spotlight on Sub-Saharan Africa. World Development, 190, 106952.https://doi.org/10.1016/j.worlddev.2025.106952
9. Directorate of Economics and Statistics. (2019). Digest of Statistics, Jammu and Kashmir. Government of Jammu and Kashmir.
10. Ellis, F. (2000). The determinants of rural livelihood diversification in developing countries. Journal of Agricultural Economics, 51(2), 289-302. https://doi.org/10.1111/j.1477-9552.2000.tb01229.x
11. Economic Survey of Jammu and Kashmir, (2025–26). Directorate of Economics and Statistics, Planning, Development, and Monitoring Department.
12. Gebreyesus, B. (2016). The effect of livelihood diversification on household income: evidence from rural Ethiopia. International Journal of African and Asian Studies, 20(1), 1-12.
13. Government of India. (2024). Economic Survey 2023–24. Ministry of Finance, Department of Economic Affairs.
14. Mahama, T. A. K., & Nkegbe, P. K. (2021). Impact of household livelihood diversification on welfare in Ghana. Scientific African, 13, 1-13. https://doi.org/10.1016/j.sciaf.2021.e00858.
15. Mengistu, N. A., & Belda, R. H. (2024). The role of livelihood diversification strategies in the total household income in Takusa Woreda, Amhara Region, Ethiopia. Cogent Social Sciences, 10(1), 2306033. https://doi.org/10.1080/23311886.2024.2306033
16. Rahut, D. B., Mottaleb, K. A., & Ali, A. (2018). Rural livelihood diversification strategies and household welfare in Bhutan. The European Journal of Development Research, 30(4), 718-748. https://doi.org/10.1057/s41287-017-0120-5
17. Rahut, D. B., & Micevska Scharf, M. (2012). Livelihood diversification strategies in the Himalayas. Australian Journal of Agricultural and Resource Economics, 56(4), 558-582. https://doi.org/10.1111/j.1467-8489.2012.00596.
18. Salam, S., Bauer, S., & Palash, M. S. (2019). Impact of income diversification on rural livelihood in some selected areas of Bangladesh: Diversification strategies and rural welfare. Journal of the Bangladesh Agricultural University, 17(1), 73-79. https://doi.org/10.3329/jbau.v17i1.40666
19. Wabara, W. W. (2020). Impact of Livelihood Diversification on Rural Households’ Income: The Case of Gamo Zone, Southern Ethiopia. Journal of Economics and Sustainable Development, 11(23),10-17. https://doi.org/10.7176/JESD/11-23-02.
20. Werdofa, Z. G., Kassahun, S., & Gashu, K. (2024). Household livelihood diversification and its determinant factors in Robe town and its surrounding hinterlands, Bale zone, southeast Ethiopia. Humanities and Social Sciences Communications, 11(1), 1744. https://doi.org/s41599-024-04293-7
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright (c) 2026 South India Journal of Social Sciences