The income diversification index literature contains a number of measures and indices, including the inverse of the Herfindhal Index (Ersado, 2006), the Herfindhal diversity Index (Block and Webb, 2001), the Simpson Index of diversity (Minot et al., 2006) and the number of income sources (NYS) (Ersado, 2006).
Income diversification is a measure of a household’s income generation from multiple sources. This livelihood strategy is observed among households and may insure food security in times of production or weather risk.
