Participation in Informal Off-farm Labor Market and its Impact on Household Income and Food Security in Malawi
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Most rural households in Malawi often opt to supplement their farm income with additional casual work on the farms of others (“ganyu” labor). However, there is a growing concern that such informal off-farm work will eventually drive rural households into absolute poverty. Using data from a 2010 Malawi household survey, this study seeks to explore this conjecture, first by examining the factors that motivate rural households to participate in informal off-farm work (ganyu) and later evaluate its outcome. Results from the average treatment effect indicate that participating in ganyu increases an individual‟s annual total off-farm income. On the other hand, it has a negative effect on own-farm income.