Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245655 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14604
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
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.
Subjects: 
temperature
labor reallocation
industrial production
JEL: 
temperature
labor
reallocation
industrial
production
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.