associated with inputs purchases and production sales.<sup>19</sup> Note that in net agricultural income we include the contribution of household labor to agricultural production.<sup>20</sup> Livestock sales and animal produce are also reported for the past 12 months, and we include this in agricultural income after netting out their associated costs (e.g., animal feed, vaccinations, veterinary services, and hired labor). As in the previous section, we include in agricultural income the value of livestock produce that is not sold.

Labor income is reported by occupation (main, secondary, and informal). For each activity there is information on the average hours worked per day, average days worked per week, and number of weeks worked per year. This allows for an estimate of yearly labor supply.<sup>21</sup> Wages are reported by activity but potentially in different units of time, mostly on a monthly basis for those with steady labor income (specially in urban areas), and on a weekly or daily basis for those working on ganyu or informal activities (e.g., landowners’ seasonal labor supply outside their own farm in the lean season). Wage payments include salaries plus additional allowances. These allowances could be in kind (mostly in maize) but are reported in monetary value. By combining the wages and the labor supply in a consistent unit of time we build an estimate for annual labor income for all individuals in the household. By summing individual labor income of all members within households we construct a measure of annual household labor income.

We define annual household business net income using information from all enterprises owned by the household.<sup>22</sup> For each enterprise we compute net income as total annual sales minus costs. In the Malawi ISA, households report the average net income for a bad, standard, and good month. Households are then asked how many of each type of month occurred in the past year. In Uganda, households report both gross income and costs. In Tanzania households report net income directly.<sup>23</sup> 19In Malawi, the majority of households receive seed and fertilizer subsidies by the Farm Inputs Subsidy Program. We use the subsidized (coupon) prices reported by each household.

> 20This is innocuous for our purposes of measuring household income because the labor income generated by household members in agricultural production is also part of household income. Under some assumptions, this labor income can be separated from net profits, but this is beyond the scope of our paper.

> 21Previous LSMS datasets provide information on labor supply with the reference period of “the past 7 days”. ISAs complement that information with recalled hours worked per day, week, and month over the past 12 months, which greatly facilitates the determination of the annualized labor supply. In particular, this avoids potential measurement error from labor supply seasonality. See Rosenzweig and Udry (2014) for a discussion on how wages are affected by seasonal weather patterns.

22Privately held businesses per household (potentially more than one) include owned nonagricultural businesses that process/sell agricultural byproducts (e.g. flour, juice, beer, jam, oil, seed, and livestock by-products), sales of forest-based products, street or market trading businesses, taxi or pickup truck drivers, bar/restaurants, professional services (e.g., doctor, accountant, lawyer, and midwife) etc..

> 23As was the case for agricultural net income, business net income includes the contribution of household labor to household businesses.

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