All that is gold does not glitter: Income and nutrition in Tanzania

Abstract

A substantial acceleration in improving nutrition is required to eradicate malnutrition by 2030. Income growth and increased labor productivity are key to realize this, but some income sources and employment sectors might be more effective in reducing malnutrition than others. We investigate the link between income and nutrition in rural Tanzania, using two rounds of the Tanzania National Panel Survey. We use both monetary and non-monetary measures of food consumption, and analyze besides caloric intake also the intake of important micronutrients, such as iron, zinc and vitamin A, and nutrient deficiencies. We compare income by employment sectors and by gender of the earner. We find that income growth is important for improving household nutrition, both in terms of food quantity and quality. We find that a higher share of income from agricultural self-employment as well as jointly earned income is strongly correlated with caloric and micronutrient intake across households. We do not find evidence to support the assertion that a higher share of income earned solely by women is associated with improved nutrition. Our results imply that closing the labor productivity gap between agriculture and rural non-farm sectors, and raising rural incomes from within agriculture, is a more effective strategy to improve nutrition in rural Tanzania than diversifying income away from agriculture.