IDEAS home Printed from https://ideas.repec.org/p/ags/iaae18/277736.html
   My bibliography  Save this paper

Weather Shocks and Labor Allocation: Evidence from Northeastern Brazil

Author

Listed:
  • Branco, D.
  • Feres, J.

Abstract

This paper analyzes whether rural households use labor allocation to mitigate the effect of drought shocks in the Northeaster Brazilian context. We first document that water scarcity leads to lower income derived from farm work as main, and higher income from secondary jobs. We then examine the extent to which extreme droughts affect time labor allocation. Our results indicate that an additional drought shock per year is associated with greater likelihood of have more than one job, lower share of farm activities in the total hours worked, and higher share of secondary job. The effects are higher for poorer municipalities. These findings are consistent with a mitigation response to reduced agricultural profitability due to water scarcity. Acknowledgement : This work was carried out with the aid of a grant from the International Development Research Centre, Ottawa, Canada through Project entitled Using an Environmental Economics Perspective to Influence Policies in Latin America and the Caribbean - Latin American and Caribbean Environmental Economics Program (LACEEP). The views expressed herein do not necessarily represent those of the IDRC or its Board of Governors.

Suggested Citation

  • Branco, D. & Feres, J., 2018. "Weather Shocks and Labor Allocation: Evidence from Northeastern Brazil," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277736, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277736
    DOI: 10.22004/ag.econ.277736
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/277736/files/166.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.277736?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Barreca, Alan I., 2012. "Climate change, humidity, and mortality in the United States," Journal of Environmental Economics and Management, Elsevier, vol. 63(1), pages 19-34.
    2. Rocha, Rudi & Soares, Rodrigo R., 2015. "Water scarcity and birth outcomes in the Brazilian semiarid," Journal of Development Economics, Elsevier, vol. 112(C), pages 72-91.
    3. Rose, Elaina, 2001. "Ex ante and ex post labor supply response to risk in a low-income area," Journal of Development Economics, Elsevier, vol. 64(2), pages 371-388, April.
    4. Sharon Maccini & Dean Yang, 2009. "Under the Weather: Health, Schooling, and Economic Consequences of Early-Life Rainfall," American Economic Review, American Economic Association, vol. 99(3), pages 1006-1026, June.
    5. Vergara, Oscar & Coble, Keith H. & Patrick, George F. & Knight, Thomas O. & Baquet, Alan E., 2004. "Farm Income Variability and the Supply of Off-Farm Labor by Limited-Resource Farmers," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(2), pages 1-13, August.
    6. Manisha Shah & Bryce Millett Steinberg, 2017. "Drought of Opportunities: Contemporaneous and Long-Term Impacts of Rainfall Shocks on Human Capital," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 527-561.
    7. Frank Ellis, 2000. "The Determinants of Rural Livelihood Diversification in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 289-302, May.
    8. Janvry, Alain de & Sadoulet, Elisabeth, 2001. "Income Strategies Among Rural Households in Mexico: The Role of Off-farm Activities," World Development, Elsevier, vol. 29(3), pages 467-480, March.
    9. Seema Jayachandran, 2006. "Selling Labor Low: Wage Responses to Productivity Shocks in Developing Countries," Journal of Political Economy, University of Chicago Press, vol. 114(3), pages 538-575, June.
    10. Kerstin K. Zander & Wouter J. W. Botzen & Elspeth Oppermann & Tord Kjellstrom & Stephen T. Garnett, 2015. "Heat stress causes substantial labour productivity loss in Australia," Nature Climate Change, Nature, vol. 5(7), pages 647-651, July.
    11. Jeffrey M. Wooldridge, 2003. "Cluster-Sample Methods in Applied Econometrics," American Economic Review, American Economic Association, vol. 93(2), pages 133-138, May.
    12. Jonasson, Erik & Helfand, Steven M., 2010. "How Important are Locational Characteristics for Rural Non-agricultural Employment? Lessons from Brazil," World Development, Elsevier, vol. 38(5), pages 727-741, May.
    13. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    14. V. Mueller & C. Gray & K. Kosec, 2014. "Heat stress increases long-term human migration in rural Pakistan," Nature Climate Change, Nature, vol. 4(3), pages 182-185, March.
    15. Katrina Jessoe & Dale T. Manning & J. Edward Taylor, 2018. "Climate Change and Labour Allocation in Rural Mexico: Evidence from Annual Fluctuations in Weather," Economic Journal, Royal Economic Society, vol. 128(608), pages 230-261, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Danyelle Branco & José Féres, 2021. "Weather Shocks and Labor Allocation: Evidence from Rural Brazil," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1359-1377, August.
    2. Francesca Marchetta & David E Sahn & Luca Tiberti, 2019. "The Role of Weather on Schooling and Work of Young Adults in Madagascar," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(4), pages 1203-1227.
    3. Dang, Hai-Anh & Hallegatte, Stephane & Trinh, Trong-Anh, 2023. "Does Global Warming Worsen Poverty and Inequality? An Updated Review," IZA Discussion Papers 16570, Institute of Labor Economics (IZA).
    4. Jia Wu & Jiada Lin & Xiao Han, 2023. "Compensation for girls in early childhood and its long-run impact: family investment strategies under rainfall shocks," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1225-1268, July.
    5. Mukherjee, Manisha & Fransen, Sonja, 2024. "Exploring migration decision-making and agricultural adaptation in the context of climate change: A systematic review," World Development, Elsevier, vol. 179(C).
    6. Nicolas Pazos & Marta Favara & Alan Sánchez & Douglas Scott & Jere Behrman, 2022. "Long-term effects of rainfall shocks on foundational cognitive skills: Evidence from Peru," PIER Working Paper Archive 23-001, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    7. Katharina Grabrucker & Michael Grimm, 2021. "Is There a Rainbow after the Rain? How Do Agricultural Shocks Affect Non‐Farm Enterprises? Evidence from Thailand," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1612-1636, October.
    8. Fitz, Dylan & League, Riley, 2020. "The impact of early-life shocks on adult welfare in Brazil: Questions of measurement and timing," Economics & Human Biology, Elsevier, vol. 37(C).
    9. Melissa Dell & Benjamin F. Jones & Benjamin A. Olken, 2014. "What Do We Learn from the Weather? The New Climate-Economy Literature," Journal of Economic Literature, American Economic Association, vol. 52(3), pages 740-798, September.
    10. Jonathan Colmer, 2013. "Climate Variability, Child Labour and Schooling: Evidence on the Intensive and Extensive Margin," GRI Working Papers 132, Grantham Research Institute on Climate Change and the Environment.
    11. Juan Segundo Zapiola, 2023. "Drought Shocks and School Attendance in Tanzania," Young Researchers Working Papers 12, Universidad de San Andres, Departamento de Economia, revised Aug 2023.
    12. Fitzsimons, Emla & Malde, Bansi & Mesnard, Alice & Vera-Hernández, Marcos, 2016. "Nutrition, information and household behavior: Experimental evidence from Malawi," Journal of Development Economics, Elsevier, vol. 122(C), pages 113-126.
    13. Díaz, Juan-José & Saldarriaga, Victor, 2023. "A drop of love? Rainfall shocks and spousal abuse: Evidence from rural Peru," Journal of Health Economics, Elsevier, vol. 89(C).
    14. Theresa Thompson Chaudhry & Maha Khan & Azka Sarosh Mir, 2021. "Son‐biased fertility stopping, birth spacing, and child nutritional status in Pakistan," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 712-736, May.
    15. Luigi Minale, 2018. "Agricultural productivity shocks, labour reallocation and rural–urban migration in China," Journal of Economic Geography, Oxford University Press, vol. 18(4), pages 795-821.
    16. Sylvain Dessy & Francesca Marchetta & Roland Pongou & Luca Tiberti, 2019. "Fertility response to climate shocks," CERDI Working papers halshs-02053100, HAL.
    17. Anna Josephson & Jeffrey D. Michler & Talip Kilic & Siobhan Murray, 2024. "The Mismeasure of Weather: Using Remotely Sensed Earth Observation Data in Economic Context," Papers 2409.07506, arXiv.org.
    18. Mesnard, Alice & Vera-Hernández, Marcos & Fitzsimons, Emla & Malde, Bansi, 2012. "Household Responses to Information on Child Nutrition: Experimental Evidence from Malawi," CEPR Discussion Papers 8915, C.E.P.R. Discussion Papers.
    19. Andrew D. Foster & Esther Gehrke, 2017. "Start What You Finish! Ex Ante Risk and Schooling Investments in the Presence of Dynamic Complementarities," NBER Working Papers 24041, National Bureau of Economic Research, Inc.
    20. Sen, Kritika & Villa, Kira M., 2022. "Rainfall shocks and adolescent school-work transition: Evidence from rural South Africa," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322383, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Labor and Human Capital;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:iaae18:277736. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.