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The paper outlines the extent and pattern of rural livelihood diversification of farm households in Barak Valley of Assam, India. The study uses primary data collected from a sample of 450 farm households from the three districts that constitute the valley. We identify the major determinants of diversification towards non-farm activities by the farm households under the valley's rainfed agriculture. We also verify the role of non-farm earnings in improving the long-run economic wellbeing of farm households. We find that, among others, the percentage of household members employed in the non-farm sector, family size, average education of male working members, age of household head and size of landholdings emerge as significant determinants of livelihood diversification. It is also established that a farm household's non-farm earnings has a positive influence over its wealth index which is taken as a measure of its long run well-being.
International Journal of Economics and Business Research – Inderscience Publishers
Published: Jan 1, 2022
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