Enhancing labour productivity by improving nutrition in Kenya: micro-econometric estimates for dynamic CGE model calibration

CUSTODIO, ESTEFANÍA; JIMÉNEZ, SOFÍA; RAMOS, MARIA PRISCILA; FERRARI, EMANUELE; SARTORI, MARTINA

Conferencia; 25th Annual Conference on Global Economic Analysis (Virtual Conference); 2022

Kenya is particularly concerned about the achievement of the Sustainable Development Goal #2(SDG #2: zero hunger), and its associated consequences for society. Malnutrition in all its forms(stunting, wasting, micronutrient deficiencies and/or overweight/obesity) can compromise humandevelopment and economic growth through different pathways. In this context, it is possible toidentify at least two pathways through which improving FS&N could enhance labour productivity.Improving the dietary nutrients intake (calories, macro and micronutrients) could allow for better (i)learning capacity and (ii) the reinforcement of health conditions. Besides, education and good healthimprove labour productivity. Thus, the aim of this paper is to provide insights about the linkagesbetween FS&N indicators and labour productivity for dynamic pathways in a CGE framework,particularly modelling baseline’s drivers about L-productivity and growth. Moreover, the estimateswould also allow performing food policy scenarios to get positive impacts over nutrition and healthand thus, on economic growth. Our results show that, indeed, daily micronutrients (iron, zinc,calcium, vitamins B2 and A) intakes are significant and positive to explain labour productivityimprovement (wage increase), as well as education, while disabilities and/or diseases impactnegatively and significantly on labour performance. We also note that in the case of vitamins C andB12 the relation is negative when all the variables are included in the regression but positive whenwe consider them separately. All in all, results confirm the virtuous cycle between health, nutrition,education and labour productivity.