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Autor:innen: 
Erscheinungsjahr: 
2021
Schriftenreihe/Nr.: 
IZA Discussion Papers No. 14604
Verlag: 
Institute of Labor Economics (IZA), Bonn
Zusammenfassung: 
To what degree can labor reallocation mitigate the economic consequences of weather-driven agricultural productivity shocks? I estimate that temperature-driven reductions in the demand for agricultural labor in India are associated with increases in non-agricultural employment. This suggests that the ability of non-agricultural sectors to absorb workers may play a key role in attenuating the economic consequences of agricultural productivity shocks. Exploiting firm-level variation in the propensity to absorb workers, I estimate relative expansions in manufacturing output in more flexible labor markets. Estimates suggest that, in the absence of labor reallocation, local economic losses could be up to 69% higher.
Schlagwörter: 
temperature
labor reallocation
industrial production
JEL: 
temperature
labor
reallocation
industrial
production
Dokumentart: 
Working Paper

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