Participation in non-farm work and vulnerability to food poverty of households in northern Ghana

Abstract

Using a 2012 survey data from northern Ghana, this study seeks to establish the impact of participation in off-farm work on the vulnerability of resource poor households to food poverty. Vulnerability to food poverty is assessed based on expected future food expenditure. The potential endogeneity problem associated with participation in off-farm work by households is taken care of using novel instrumental variable approach. Analysis of determinants of expected future food expenditure is done using a standard Feasible Generalized Least Squares (FGLS) method. Demographic and socioeconomic variables, location variables, and household facilities are also included in the model as control variables. Results show that participation in off-farm work significantly increased the future expected food consumption and thereby alleviating the vulnerability of households to food poverty. Results also confirmed that food poverty and vulnerability to food poverty are not independent from each other. Off-farm work plays a crucial role in providing the means to overcome the risk of food poverty in these resource poor households. Policy tools should be designed taking into account the vulnerability of these households to food poverty, bearing in mind the significance of their food budget shares and the uncertainties surrounding food production and consumption by these households.