Abstract
This study attempted to measure and decompose income inequality with the hypothesis that livestock is a major income source, and the value of farm assets is a major factor in increasing income inequality among agricultural households. The results revealed that livestock and agricultural wages had a larger equalizing effect across the income sources, and cultivation and off-farm had an un-equalizing effect on income distribution. The findings suggested that livestock and work opportunities in off-farm as an agricultural labourer can serve as potential sectors for marginal and small farmers to enhance income and minimize income variability across landholding categories.
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