Determinants of Livelihood Diversification in PHEK District of Nagaland, India

Abstract

Nagaland is a state without any major industry, which has resulted in the people's dependence on the government, seeking government jobs. As a result, the need for survival and maintaining the standard of living has forced the household to diversify their livelihood activities by adopting multiple jobs. Numerous factors determine the ability of a household to diversify its livelihood. In this study, data was collected from 170 households. The Simpson Diversity Index is applied to measure diversity, and the censored Tobit model is used to analyze the determinants of livelihood diversification. The study found that both non-farm and farm have a high diversity level and that many households do not diversify their livelihood activities. The result also shows that education has a negative significant impact on the household’s decision to diversify their livelihood activities.