Patterns and Characteristics of Households Income Diversification: The Case of Thai Rural Households

Abstract

To mitigate the socio- economic problems arising from income disparity, a comprehensive view and insights into rural households’ behaviors and environment are crucial. This study employs cluster analysis to develop an empirical taxonomy of households’ occupations in Thai rural areas and gain insights into households' income diversification and occupation patterns, as well as contributing factors. Results of the study indicate that, among the five groups, the extent of the income diversification is rather low as the households concentrate on one main production activity to produce household income. There is no evidence of the income generated through value- added products. The limitation of the household’s ability to diversify their income sources is due to household size and composition.