Policy brief No. 3. Adequate nutrition is a crucial welfare dimension. Malnutrition at a young age can have severe con- sequences for a person’s development of human, social, and economic capital. Also in later phases of one’s life, malnutrition can severely affect health and restrict productivity as well as overall quality of life. Efforts to improve nutrition among rural populations, for example through more diversified diets, are therefore key components of many rural development agendas, especially in Africa where undernutrition is still a large public health prob- lem.
Labor saving innovations are essential to increase agricultural productivity, but they might also increase inequality through displacing labor. Empirical evidence on such labor displacements is limited. This study uses representative data at local and national scales to analyze labor market effects of the expansion of oil palm among smallholder farmers in Indonesia. Oil palm is labor-saving in the sense that it requires much less labor per unit of land than alternative crops.