Weather, Water, and Work : Climatic Water Variability and Labor MarketOutcomes in Sub-Saharan Africa

Vulnerability to climate change and water scarcity is increasing globally. How this affects individual employment outcomes is still not well understood. Using survey data collected from approximately half a million individuals across Sub-Saharan Africa over from 2005 to 2018, this paper examines the causal relationship between water availability and labor market outcomes. It combines georeferenced household survey data with a drought index that captures the exogenous effects of both rainfall and temperature on water availability. The findings suggest that extremely dry periods decrease employment by 2.5 percentage points on average, and wet periods with an abundance of soil moisture (not flooding) increase employment by 4 percentage points. The negative effects of dry shocks are larger in rural, poorer, and agriculture-dependent areas and for individuals who hold low-skilled jobs or work as farmers. Moreover, the paper finds that the burden of dry shocks disproportionately falls on women, while the benefits of wet shocks accrue more to men. The presence of irrigation infrastructure and the historical evolution of local livelihood strategies—historical mode of subsistence—partly mediate the impacts of water shocks.