Structural transformation and poverty in Malawi: decomposing the effects of occupational and spatial mobility

This paper aims to identify the main drivers of poverty reduction in Malawi. Using an augmented poverty decomposition methodology, it explores in what way the different farm and non-farm economic activities contribute to poverty reduction and income growth. The analysis also examines how household occupation and spatial mobility support both poverty reduction and household welfare improvements. Findings show that the increase in non-farm self-employment is the most significant contributor to poverty reduction overall, even though agriculture still exerts a considerable and positive influence, especially due to the size of the population involved and the observance of agricultural growth.