Livelihood Diversification as a Pathway to Household Welfare: Evidence from Traditional Washermen in the Puducherry Region
1P. Vignarajan* and 2C. Venkatesh**
1,2Department of Economics, Faculty of Arts, Annamalai University, Annamalai Nagar, Chidambaram – 608002 (India). Address for Correspondence : P. Vignarajan Email: vignarajan17@gmail.com Contact Details of Authors: 1*P. Vignarajan– 9597393446 ORCID ID: https://orcid.org/0009-0003-6419-3681 2**C. Venkatesh – 9159697983 ORCID ID: https://orcid.org/0009-0001-6372-9064
ABSTRACT
This study examines the effect of livelihood diversification on household welfare among traditional washermen in the Puducherry region. Using a cross-sectional research design, primary data were collected from 400 households through a structured questionnaire using a multistage random sampling technique. Household welfare was measured using a Principal Component Analysis (PCA)-based Welfare Index, while livelihood diversification was assessed through the Simpson Diversification Index (SDI). The study employed descriptive statistics, Binary Logistic Regression, Endogenous Switching Regression (ESR), Propensity Score Matching (PSM), and Multiple Linear Regression (OLS) to analyse the determinants and welfare effects of livelihood diversification