Participation in Informal Off-farm Labor Market and its Impact on Household Income and Food Security in Malawi

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.