EconStor >
Verein für Socialpolitik >
Ausschuss für Entwicklungsländer, Verein für Socialpolitik >
Proceedings of the German Development Economics Conference, 2010 (Hannover) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/39958
  
Title:Ganyu Labour in Malawi: Understanding Rural Households’ Labour Supply Strategies PDF Logo
Authors:Dimowa, Ralitza
Michaelowa, Katharina
Weber, Anke
Issue Date:2010
Series/Report no.:Proceedings of the German Development Economics Conference, Hannover 2010 29
Abstract:In Malawi, informal off-farm labour (ganyu) has often been described as a survival strategy which eventually drives poor rural households into even further destitution. Based on data from the Second Integrated Household Survey for 2004, we estimate the determinants of the decision to supply labour in the ganyu market and the amount of labour supplied. Our results do not support the conjecture that ganyu is necessarily a low-return strategy that confines subsistence constrained households to a vicious circle of poverty. However, we do find evidence that ganyu is used as an ex-post coping strategy in the event of shocks, and as an ex-ante social insurance mechanism. Moreover, we generally find a positive reaction of ganyu supply to an increase in the ganyu wages, and no evidence of any backward bending segment of the supply curve for households close to the subsistence level. While ganyu does not appear to drive poor households into further destitution, these households do seem to suffer the most when they face demand side constraints in times of greatest needs.
Subjects:rural labor supply
insurance strategies
poverty
Malawi
JEL:O12
J22
J24
Document Type:Conference Paper
Appears in Collections:Proceedings of the German Development Economics Conference, 2010 (Hannover)

Files in This Item:
File Description SizeFormat
299_michaelowa.pdf226.49 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/39958

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.