# **Appendix 8: Effects of participation in the non-farm activities on poverty incidence, gap and severity in rural Malawi**

||Poverty i|ncidence||Poverty|gap|||Poverty se|verity||
|---|---|---|---|---|---|---|---|---|---|---|
|VARIABLES|CRE Probit|Linear FE|CRE<br>Probit|Fractional CRE<br>Probit|CRE<br>Tobit|Linear FE|CRE<br>Probit|Fractional CRE<br>Probit|<br>CRE<br>Tobit|Linear<br>FE|
|Wage employment participation|-0.074**|-0.072**|-0.034***|-0.034**|-0.033**|-0.034**|-0.018**|-0.018*|-0.017**|-0.019**|
||[0.012]|[0.022]|[0.007]|[0.019]|[0.011]|[0.018]|[0.021]|[0.056]|[0.017]|[0.045]|
|Self-employment participation|-0.085***|-0.083***|-0.035***|-0.035***|-0.035***|<br>-0.030***|-0.018***|-0.018***|-0.017***|<br>-0.014**|
||[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.002]|[0.000]|[0.001]|[0.000]|[0.011]|
|Age of the household head|0.003**|0.002*|0.001+|0.001|0.001*|0.001|0.000+|0.000|0.000*|0.000|
||[0.027]|[0.069]|[0.110]|[0.154]|[0.064]|[0.279]|[0.142]|[0.195]|[0.058]|[0.301]|
|Male-headed household (0/1)|-0.044+|-0.045|-0.025**|-0.026**|-0.023**|-0.022+|-0.010*|-0.011*|-0.010*|-0.008|
||[0.120]|[0.206]|[0.020]|[0.020]|[0.035]|[0.103]|[0.091]|[0.077]|[0.076]|[0.315]|
|Highest level of formal education acquired by household head|||||||||||
|PSLC|0.043|0.060+|0.005|0.003|0.008|0.016|-0.000|-0.001|0.003|0.007|
||[0.288]|[0.142]|[0.775]|[0.849]|[0.611]|[0.272]|[0.990]|[0.939]|[0.676]|[0.392]|
|JCE|-0.096*|-0.061|-0.044***|-0.046**|-0.042**|-0.015|-0.019**|-0.020**|-0.018**|-0.001|
||[0.051]|[0.282]|[0.004]|[0.012]|[0.017]|[0.431]|[0.013]|[0.030]|[0.031]|[0.954]|
|MSCE|-0.075|-0.010|-0.037|-0.040|-0.035|0.004|-0.014|-0.015|-0.013|0.008|
||[0.347]|[0.888]|[0.185]|[0.176]|[0.217]|[0.869]|[0.376]|[0.342]|[0.318]|[0.576]|
|Maximum level of formal education acquired in the|||||||||||
|<br>household|||||||||||
|PSLC|-0.002|-0.016|0.008|0.008|0.004|-0.004|0.004|0.004|0.002|-0.003|
||[0.949]|[0.644]|[0.554]|[0.565]|[0.729]|[0.750]|[0.577]|[0.598]|[0.783]|[0.694]|
|JCE|<br>-0.070*|<br>-0.069+|<br>-0.014|<br>-0.015|<br>-0.020|<br>-0.015|<br>-0.009|<br>-0.009|<br>-0.011+|<br>-0.009|
||[0.077]|[0.119]|[0.328]|[0.345]|[0.162]|[0.347]|[0.280]|[0.312]|[0.113]|[0.331]|
|MSCE|-0.090+|-0.077|-0.026|-0.026|-0.030|-0.026|-0.012|-0.012|-0.015|-0.012|
||[0.122]|[0.201]|[0.227]|[0.299]|[0.166]|[0.304]|[0.377]|[0.422]|[0.174]|[0.394]|
|Number of infant (<5yo) in HH|0.074***|0.078***|0.028***|0.028***|0.030***|0.030***|0.013***|0.013***|0.015***|0.014***|
||[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|
|Number of children (5-14yo) in the household|<br>0.074***|<br>0.081***|<br>0.029***|<br>0.029***|<br>0.030***|<br>0.030***|<br>0.014***|<br>0.014***|<br>0.015***|<br>0.014***|
||[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|
|Number of prime adults (15-60yo) in HH|<br>0.052***|<br>0.047***|<br>0.024***|<br>0.024***|<br>0.024***|<br>0.021***|<br>0.012***|<br>0.012***|<br>0.012***|<br>0.010***|
||[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|
|Number of elderly (60yo+) in HH|<br>0.104***|<br>0.103***|<br>0.040***|<br>0.040***|<br>0.042***|<br>0.034***|<br>0.019***|<br>0.019***|<br>0.020***|<br>0.015**|
||[0.001]|[0.003]|[0.000]|[0.000]|[0.000]|[0.010]|[0.001]|[0.002]|[0.000]|[0.048]|
|Household access to loan (0/1)|<br>-0.000|<br>-0.003|<br>-0.015*|<br>-0.015*|<br>-0.010|<br>-0.019**|<br>-0.013***|<br>-0.013***|<br>-0.008*|<br>-<br>|
|||||||||||0.016***|
||[0.984]|[0.921]|[0.091]|[0.091]|[0.277]|[0.030]|[0.008]|[0.006]|[0.066]|<br>[0.001]|
|Normalized TLU index|-1535**|-0921*|-0426|-0434|-0537*|-0102|-0224|-0222|-0262*|-0018|
||.<br>[0.045]|.<br>[0.086]|.<br>[0.181]|.<br>[0.201]|.<br>[0.056]|.<br>[0.554]|.<br>[0.217]|.<br>[0.256]|.<br>[0.057]|.<br>[0.835]|
|Normalized agricultural asset index + Normalized land|<br>-0.478***|<br>-0.465***|<br>-0.195***|<br>-0.197***|<br>-0.198***|<br> <br>-0.194***|<br>-0.102***|<br>-0.103***|<br>-0.101***|<br> <br>-|
|holdings||||||||||0.100***|
||[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|[0.000]|
|Household was affected negatively by some income Shock|-0.015|-0.023|-0.006|-0.005|-0.005|-0.003|0.001|0.001|-0.000|0.004|

54