Description

Abstract: A simple linear programming model of representative smallholder households is used to investigate the sources of relative scarcity of labor and land in Malawi. The paradox of on-farm laborshortages on small landholdings can be explained by the multiple constraints smallholders face. These multiple constraints, including lack of finance, concerns for food security, and others, lead to suboptimal allocations of household resources. In turn, the low returns to labor and land, contribute to household food insecurity and a vicious cycle of poverty. The findings of the paper provide a clear signal to policymakers and research and extension institutions that these constraints are all linked, and addressing one cannot be effective without addressing the others.