Quito, Ecuador
This study examines the process of income diversification among indigenous and mestizo households settled in one of the world’s biodiversity hotspots. The results of a random-effect tobit model show that agricultural wage work is the principal income source for homes with scarce or no land. Self-employment employs households with low endowments of education but high endowments of capital. Non-agricultural wage income absorbs educated individuals either indigenous or mestizo.