The Determinants of Income Diversification in Rural Households in Tahoua Department, Niger

Abstract

Income diversification has become the norm within rural households in developing countries. Participation in multiple activities helps reduce risk and allows households to ensure their livelihood. This is a case study that examines empirical evidence for income and crop diversification for a sample of rural households in Niger in order to determine which category of households, poorest or wealthiest, have the most diversified incomes. The study also examines the impacts of household characteristics and location on diversification. Results indicate that households at greatest risk of falling into destitution are pushed into diversifying income as a strategy to mitigate risk. Diversification depends on the availability of both physical and financial capitals, and on the regions in which households are located. In addition, results suggest that, although female-headed households have less access to resources, they are more diversified than households headed by men.