Livelihood diversification and household economic well-being in rural Sagar, Madhya Pradesh, India

This study attempted to measure the impact of livelihood diversification on household economic well-being and to examine the socioeconomic determinants of various livelihood strategies. The study utilised primary data collected through a structured interview schedule as well as key informant interviews (KIIs) and focused group discussions (FGDs). Stepwise linear regression was used to find the contribution of livelihood strategies in household economic well-being, while logistic regression was applied to examine the determinants of livelihood diversification. The study concluded that diversification towards sectors with high returns was the most instrumental in enhancing household economic well-being. The other social group, large, highly educated, and landless households were more likely to adopt sectors with high returns. Women’s participation in the labour force was positively associated with household economic well-being. This study highlighted the need for immediate policy interventions by filling educational gaps and equalising economic opportunities in rural areas in Madhya Pradesh.