Income Diversification

Indicator Phrasing

% of households which gained an additional, sustained source of income that is not vulnerable to the same hazards as their initial income source.

Indicator Phrasing

INDICATOR PHRASING: % of households which gained an additional, sustained source of income that is not vulnerable to the same hazards as their initial income source.

What is its purpose?

The indicator measures the percentage of supported households who (thanks to the provided assistance) managed to gain an additional, longer-term source of income that is not vulnerable to the same hazards as their original source of income. Income diversification is crucial for strengthening people’s resilience, as it enables them to maintain one or more income streams when another has been affected by a hazard.

How to Collect and Analyse the Required Data

Collect the following data by conducting individual interviews with the representatives of a representative sample of the target households: 

 

RECOMMENDED SURVEY QUESTION (Q) AND POSSIBLE ANSWERS (A) 

Q1: In the past [specify the time], has your household received from [specify the name of the organization] any support that aimed to help you gain a new source of income?

A1: yes / no / does not know

 

(ask the following question only if the previous answer is YES)

 

Q2: What type of income generating activity were you supported to do?

A2: pre-define the types of answers according to the project’s context + include an option – “other – specify: ……………………………”

 

Q3: When you look at how this income generating activity is going, how likely is it that it will succeed in providing you with income in the long-term? Would you say that it is very likely, somewhat likely or that it is not very likely?

A3 Select one of the following:

1) very likely

2) somewhat likely

3) not very likely

 

Q4: Aside from this income generating activity, what is your main source of income?

A4 to be concluded by the data collector:

1) the SUPPORTED source of income is vulnerable to the same hazard(s) as the main source of income

2) the SUPPORTED source of income is NOT VULNERABLE to the same hazard(s) as the main source of income

 

The next step is to calculate the number of respondents:

1) whose households were supported in gaining a new source of income; and

2) who think that it is very or quite likely that this source will provide them with income in the long-term; and

3) whose new / supported source of income is NOT vulnerable to the same risks as their main source of income

 

To calculate the indicator’s value, divide the number of households which gained an additional, longer-term source of income that is not vulnerable to the same hazards as their main source of income (see the “next step” above) by the total number of surveyed households who received support. Multiply the result by 100 to convert it to a percentage.

 

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This guidance was prepared by Tearfund ©

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