The paper analyzes the relationship between off-farm labor allocation andon-farm enterprise diversification as farm household income stabilizationstrategies with census data from the federal state of Upper Austria,Austria. The results suggest that both on-farm diversification and off-farmlabor allocation are related to farm and household characteristics. Largerfarms tend to be more diversified. Younger farmers are more likely to workoff-farm. Larger farm households tend to allocate more labor to off-farmincome activities.