Rural Non-Farm Employment and Household Welfare : Evidence from Malawi
This paper uses nationally representative panel data and a combination of econometric approaches, to explore linkages between rural non-farm activities (wage and self-employment) and household welfare in rural Malawi. The paper analyzes the average...
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| Format: | Working Paper |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/161961496951955142/Rural-non-farm-employment-and-household-welfare-evidence-from-Malawi http://hdl.handle.net/10986/27296 |
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okr-10986-272962021-06-08T14:42:47Z Rural Non-Farm Employment and Household Welfare : Evidence from Malawi Adjognon, Guigonan Serge Liverpool-Tasie, Saweda Lenis de la Fuente, Alejandro Benfica, Rui POVERTY RURAL EMPLOYMENT HOUSEHOLD ENTERPRISES This paper uses nationally representative panel data and a combination of econometric approaches, to explore linkages between rural non-farm activities (wage and self-employment) and household welfare in rural Malawi. The paper analyzes the average treatment effects and distributional effects on participants' welfare indicators, such as households' per capita consumption expenditures. Then it investigates the effects of non-farm activities on the use of agricultural inputs, one channel through which non-farm employment might improve the welfare of rural households. Although participation in non-farm activities is not randomly assigned in the data, the identification strategy relies on fixed effects and correlated random effects estimation methods, dealing effectively with time invariant heterogeneity, coupled with geographical covariate adjustments, controlling for time varying differences in local market conditions and employment opportunities. The results suggest that non-farm wage employment and non-farm self-employment are welfare improving and poverty reducing. However, households at the lower tail of the wealth distribution benefit significantly less from participation than the wealthiest. Although the results support the promotion of the rural non-farm economy for poverty reduction purposes, they indicate that targeted interventions that improve poor households’ access to high-return non-farm opportunities are likely to lead to bigger successes in curbing rural poverty. 2017-06-21T18:30:24Z 2017-06-21T18:30:24Z 2017-06 Working Paper http://documents.worldbank.org/curated/en/161961496951955142/Rural-non-farm-employment-and-household-welfare-evidence-from-Malawi http://hdl.handle.net/10986/27296 English en_US Policy Research Working Paper;No. 8096 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Malawi |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
POVERTY RURAL EMPLOYMENT HOUSEHOLD ENTERPRISES |
| spellingShingle |
POVERTY RURAL EMPLOYMENT HOUSEHOLD ENTERPRISES Adjognon, Guigonan Serge Liverpool-Tasie, Saweda Lenis de la Fuente, Alejandro Benfica, Rui Rural Non-Farm Employment and Household Welfare : Evidence from Malawi |
| geographic_facet |
Africa Malawi |
| relation |
Policy Research Working Paper;No. 8096 |
| description |
This paper uses nationally
representative panel data and a combination of econometric
approaches, to explore linkages between rural non-farm
activities (wage and self-employment) and household welfare
in rural Malawi. The paper analyzes the average treatment
effects and distributional effects on participants'
welfare indicators, such as households' per capita
consumption expenditures. Then it investigates the effects
of non-farm activities on the use of agricultural inputs,
one channel through which non-farm employment might improve
the welfare of rural households. Although participation in
non-farm activities is not randomly assigned in the data,
the identification strategy relies on fixed effects and
correlated random effects estimation methods, dealing
effectively with time invariant heterogeneity, coupled with
geographical covariate adjustments, controlling for time
varying differences in local market conditions and
employment opportunities. The results suggest that non-farm
wage employment and non-farm self-employment are welfare
improving and poverty reducing. However, households at the
lower tail of the wealth distribution benefit significantly
less from participation than the wealthiest. Although the
results support the promotion of the rural non-farm economy
for poverty reduction purposes, they indicate that targeted
interventions that improve poor households’ access to
high-return non-farm opportunities are likely to lead to
bigger successes in curbing rural poverty. |
| format |
Working Paper |
| author |
Adjognon, Guigonan Serge Liverpool-Tasie, Saweda Lenis de la Fuente, Alejandro Benfica, Rui |
| author_facet |
Adjognon, Guigonan Serge Liverpool-Tasie, Saweda Lenis de la Fuente, Alejandro Benfica, Rui |
| author_sort |
Adjognon, Guigonan Serge |
| title |
Rural Non-Farm Employment and Household Welfare : Evidence from Malawi |
| title_short |
Rural Non-Farm Employment and Household Welfare : Evidence from Malawi |
| title_full |
Rural Non-Farm Employment and Household Welfare : Evidence from Malawi |
| title_fullStr |
Rural Non-Farm Employment and Household Welfare : Evidence from Malawi |
| title_full_unstemmed |
Rural Non-Farm Employment and Household Welfare : Evidence from Malawi |
| title_sort |
rural non-farm employment and household welfare : evidence from malawi |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/161961496951955142/Rural-non-farm-employment-and-household-welfare-evidence-from-Malawi http://hdl.handle.net/10986/27296 |
| _version_ |
1764464135914913792 |