Change in number of targeted population stabilizing or improving their <monthly/weekly/annual> net income for a defined period (e.g. six, twelve months).
Stabilizing and Increasing net income indicates: or improvement of productivity (primary production, IGA), or improvement of market-links (value chain, sell prices), or efficient application of productive/business skills (reduce of expenses), or access to new or better-paid employment.
To show sustainability it is necessary that income increase or stabilization last a defined period of time (6 months, 12 months), depending on the duration of the program.
Increase of income (or stabilized income) should be fixed and (if possible) reference to context wage/salary/etc.
- Includes any type of agro based, non-agro based, or service based income generating activity, can include market chain support, value addition or transformation etc.
- Includes access to employment.
- Includes strengthening of existing sources of income, or creation/diversification of sources of income.
- MSME: micro, small and medium enterprises (formal or informal)
- IGA: income generation activities
Gender, age, disabilities, chronic diseases (if individuals, associations members, etc.);
Head of household gender, age, disabilities, chronic diseases, dependency ratio (if households), and any other relevant criteria, such as urban/rural, religious, ethnic or political identities;
Wealth groups; Livelihoods group (e.g. pastoralist, farmers, traders)
Period to achieve the objective;
Direction of change:
Both secondary and primary data collection can be used according to context.
- Baseline/Endline. If multiyear programme consider also a mid-term evaluation.
- Secondary data. Reliable/relevant sources from other actors, clusters or government (e.g. assessment information, reference to a normal situation).
Unit of Measurement: Population, but can also be households or productive organizations, or MSME. If percentage:
- Numerator: Number of targeted population that have improved/stabilized their net income.
- Denominator: Total number of targeted population
Data Collection methods:
Secondary data analysis;
Income records (MSME, productive organization);
Focus Group Discussions; Key Informant Interviews;
Depending on the source of incomes, consider to collect monthly records.
Data collection should show the stability/increase of household incomes over the defined period.
Measurement period and frequency depend on the income generation activity.
Increase of income (or stabilized income) must be relevant. It should be fixed and (if possible) reference to context wage/salary/etc.
[primary production] Consider seasonal calendar to determine when to measure the indicator.
Consider market price and labour wages according to season variations throughout the year.
Need to measure gross income + productive expenses both in baseline and in endline or scheduled monitoring.
Net income is more accurate than gross income, because reflects also livelihoods expenses that could influence in production increase and in revenues/benefits (e.g. use of improved productive assets -more expensive-, or access to productive services -veterinary-)
Take into consideration that measurement difficulty depends on the income generation activity.