Impact of off-farm Employment on Rural Household Food and Nutrition Security: Evidence from the Southern Highland Regions of Tanzania

Despite the rural off-farm economy becoming increasingly important, the question whether off-farm income-generating activities increase household food and nutritional security in Tanzania remains unanswered. The current study explores the issue of off-farm employment by addressing two objectives: (i) to examine the drivers of households’ decision to participate in off-farm employment in a high-potential agricultural zone in Tanzania and (ii) to evaluate the impact of off-farm activities on rural households’ food security and nutritional security. We use household survey data from the southern highland districts of Mbeya and Songwe regions collected in 2014 and 2016. We employ difference-in-difference and propensity score matching techniques to evaluate the impact of participation in off-farm employment on household food security using three indicators with different recall periods. Results show that more adults per household and a larger farm size stimulated involvement in off-farm activities, while farming experience and livestock ownership had a limiting effect. Participation has a significant impact on food security, but the strength of the effect depends on the specific indicator selected. We recommend that the development of policies and programs that pay more attention to off-farm work can boost rural household income and thus promote food security and nutritional security.