This paper presents research findings on livelihood diversification from southern Ethiopia. The history of livelihood diversification is outlined to shown how specific key events can either trigger or inhibit diversification activities. With many women involved in diversification activities, and most diversifiers keeping control over the income that they earn, the high rates of diversification and importance of the contribution of diversification to cash incomes clearly has implications for gender relations within the household.
The paper outlines some key determinants of diversification, which operate at different scales. These include caste, household size, structure, and gender of household head, as well as wealth group, ownership and access to assets and access to transport, markets and services. In addition access to credit is important and the paper examines a key institution, equb, that enables access to credit. The paper concludes with some policy implications of the research particularly around credit and institutions.