This paper investigates changes in income diversification patterns for the case of Burkina Faso between 1994 and 2003. Contrary to common beliefs, our empirical analysis shows that rural households are not increasingly diversifying their income...

This paper analyses changes in income portfolios of rural households and its determinants for the case of Ghana in the 1990s. Our analysis shows that, contrary to common beliefs, rural Ghana has seen major economic transformation, as households...

Using data from Western Kenya, we confirm the existence of a dichotomous non-agricultural sector. The poverty and inequality implications of the differently motivated diversification strategies only partly correspond to expected patterns. While...

In a simple model, I demonstrate that the U-shaped relationship between income and income diversification typically found in developing countries can be explained without any risk considerations. It might be the result of pure income maximization in...

Engagement in non-agricultural activities in rural areas can be classified into survival-led or opportunity-led. Survival-led diversification would decrease inequality by increasing the incomes of poorer households and thus reduce poverty. By...