IDEAS home Printed from https://ideas.repec.org/a/bla/agecon/v48y2017i1p77-89.html
   My bibliography  Save this article

Occupational diversification as an adaptation to rainfall variability in rural India

Author

Listed:
  • Emmanuel Skoufias
  • Sushenjit Bandyopadhyay
  • Sergio Olivieri

Abstract

Occupational diversification among household members in rural India is investigated as an adaptation strategy against the risks arising from the variability of local rainfall. Nationally representative household†level survey data are combined with the coefficient of variation of rainfall constructed based on historical rainfall data at the district level. The analysis finds that high rainfall variability has significant negative effects on the agricultural specialization of within†household occupational choices. This result is reinforced by the finding that improved access to irrigation, education, credit, roads, and postal services, is associated with a lower occupational diversification within families and a greater specialization of household members in agricultural†related employment.

Suggested Citation

  • Emmanuel Skoufias & Sushenjit Bandyopadhyay & Sergio Olivieri, 2017. "Occupational diversification as an adaptation to rainfall variability in rural India," Agricultural Economics, International Association of Agricultural Economists, vol. 48(1), pages 77-89, January.
    • Handle: RePEc:bla:agecon:v:48:y:2017:i:1:p:77-89
    DOI: 10.1111/agec.12296
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/agec.12296
    Download Restriction: no
    File URL: https://libkey.io/10.1111/agec.12296?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. Sushenjit Bandyopadhyay & Emmanuel Skoufias, 2015. "Rainfall variability, occupational choice, and welfare in rural Bangladesh," Review of Economics of the Household, Springer, vol. 13(3), pages 589-634, September.
    2. Jalan, Jyotsna & Ravallion, Martin, 2001. "Behavioral responses to risk in rural China," Journal of Development Economics, Elsevier, vol. 66(1), pages 23-49, October.
    3. Rosenzweig, Mark R & Wolpin, Kenneth I, 1993. "Credit Market Constraints, Consumption Smoothing, and the Accumulation of Durable Production Assets in Low-Income Countries: Investment in Bullocks in India," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 223-244, April.
    4. Dercon, Stefan, 2004. "Growth and shocks: evidence from rural Ethiopia," Journal of Development Economics, Elsevier, vol. 74(2), pages 309-329, August.
    5. Jalan, Jyotsna & Ravallion, Martin, 1999. "Are the poor less well insured? Evidence on vulnerability to income risk in rural China," Journal of Development Economics, Elsevier, vol. 58(1), pages 61-81, February.
    6. Horrace, William C. & Oaxaca, Ronald L., 2006. "Results on the bias and inconsistency of ordinary least squares for the linear probability model," Economics Letters, Elsevier, vol. 90(3), pages 321-327, March.
    7. Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 178-199.
    8. Shawn Cole & Xavier Giné & James Vickery, 2017. "How Does Risk Management Influence Production Decisions? Evidence from a Field Experiment," Review of Financial Studies, Society for Financial Studies, vol. 30(6), pages 1935-1970.
    9. Rosenzweig, Mark R & Stark, Oded, 1989. "Consumption Smoothing, Migration, and Marriage: Evidence from Rural India," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 905-926, August.
    10. Mullahy, John, 1990. "Weighted least squares estimation of the linear probability model, revisited," Economics Letters, Elsevier, vol. 32(1), pages 35-41, January.
    11. Jonathan Morduch, 1995. "Income Smoothing and Consumption Smoothing," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 103-114, Summer.
    12. Christopher B. Barrett & Michael R. Carter, 2013. "The Economics of Poverty Traps and Persistent Poverty: Empirical and Policy Implications," Journal of Development Studies, Taylor & Francis Journals, vol. 49(7), pages 976-990, July.
    13. Pitt, Mark M & Rosenzweig, Mark R & Gibbons, Donna M, 1993. "The Determinants and Consequences of the Placement of Government Programs in Indonesia," The World Bank Economic Review, World Bank, vol. 7(3), pages 319-348, September.
    14. Rosenzweig, Mark R & Binswanger, Hans P, 1993. "Wealth, Weather Risk and the Composition and Profitability of Agricultural Investments," Economic Journal, Royal Economic Society, vol. 103(416), pages 56-78, January.
    15. Dercon, Stefan, 1996. "Risk, Crop Choice, and Savings: Evidence from Tanzania," Economic Development and Cultural Change, University of Chicago Press, vol. 44(3), pages 485-513, April.
    16. Nidhiya Menon, 2009. "Rainfall Uncertainty and Occupational Choice in Agricultural Households of Rural Nepal," Journal of Development Studies, Taylor & Francis Journals, vol. 45(6), pages 864-888.
    17. Hallie Eakin, 2000. "Smallholder Maize Production and Climatic Risk: A Case Study from Mexico," Climatic Change, Springer, vol. 45(1), pages 19-36, April.
    18. Barry Smit & Ian Burton & Richard Klein & J. Wandel, 2000. "An Anatomy of Adaptation to Climate Change and Variability," Climatic Change, Springer, vol. 45(1), pages 223-251, April.
    19. Stefan Dercon & John Hoddinott, 2003. "Health, Shocks and Poverty Persistence," WIDER Working Paper Series DP2003-08, World Institute for Development Economic Research (UNU-WIDER).
    20. Valerie Mueller & Daniel Osgood, 2009. "Long-term Impacts of Droughts on Labour Markets in Developing Countries: Evidence from Brazil," Journal of Development Studies, Taylor & Francis Journals, vol. 45(10), pages 1651-1662.
    21. Deininger, Klaus & Olinto, Pedro, 2001. "Rural Nonfarm Employment and Income Diversification in Colombia," World Development, Elsevier, vol. 29(3), pages 455-465, March.
    22. Stefan Dercon & Pramila Krishnan, 2000. "Vulnerability, seasonality and poverty in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 25-53.
    23. Eswaran, Mukesh & Kotwal, Ashok, 1990. "Implications of Credit Constraints for Risk Behaviour in Less Developed Economies," Oxford Economic Papers, Oxford University Press, vol. 42(2), pages 473-482, April.
    24. Klaassen F. J G M & Magnus J. R., 2001. "Are Points in Tennis Independent and Identically Distributed? Evidence From a Dynamic Binary Panel Data Model," Journal of the American Statistical Association, American Statistical Association, vol. 96, pages 500-509, June.
    25. Nidhiya Menon & Narayanan Subramanian, 2008. "Learning, diversification and the nature of risk," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 35(1), pages 117-145, April.
    26. Lanjouw, Jean O. & Lanjouw, Peter, 2001. "The rural non-farm sector: issues and evidence from developing countries," Agricultural Economics, Blackwell, vol. 26(1), pages 1-23, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francesca Marchetta & David Sahn & Luca Tiberti, 2018. "School or work? The role of weather shocks in Madagascar," CERDI Working papers halshs-01774919, HAL.
    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. Varun Kumar Das & A. Ganesh-Kumar, 2019. "Off-the-farm livelihood choice of farm households in India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2019-032, Indira Gandhi Institute of Development Research, Mumbai, India.
    4. Karim, Azreen, 2018. "The Household Response to Persistent Natural Disasters: Evidence from Bangladesh," World Development, Elsevier, vol. 103(C), pages 40-59.
    5. Pace, Noemi & Sebastian, Ashwini & Daidone, Silvio & Dela O Campos, Ana Paula & Prifti, Ervin & Davis, Benjamin, 2022. "Cash transfers’ role in improving livelihood diversification strategies and well-being: short- and medium-term evidence from Zimbabwe," World Development, Elsevier, vol. 154(C).
    6. Basu, Sayahnika, 2020. "Does Drought Accelerate Structural Change in India?," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304324, Agricultural and Applied Economics Association.

    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. Gaurav, Sarthak, 2015. "Are Rainfed Agricultural Households Insured? Evidence from Five Villages in Vidarbha, India," World Development, Elsevier, vol. 66(C), pages 719-736.
    2. Barnett, Barry J. & Barrett, Christopher B. & Skees, Jerry R., 2008. "Poverty Traps and Index-Based Risk Transfer Products," World Development, Elsevier, vol. 36(10), pages 1766-1785, October.
    3. Emiliano Magrini & Pierluigi Montalbano, 2012. "Trade openness and vulnerability to poverty: Vietnam in the long-run (1992-2008)," Working Paper Series 3512, Department of Economics, University of Sussex Business School.
    4. Letta, Marco & Montalbano, Pierluigi & Tol, Richard S.J., 2018. "Temperature shocks, short-term growth and poverty thresholds: Evidence from rural Tanzania," World Development, Elsevier, vol. 112(C), pages 13-32.
    5. You, Jing, 2014. "Risk, under-investment in agricultural assets and dynamic asset poverty in rural China," China Economic Review, Elsevier, vol. 29(C), pages 27-45.
    6. Stefan Dercon (QEH), "undated". "Risk, Growth and Poverty: what do we know, what do we need to know?," QEH Working Papers qehwps148, Queen Elizabeth House, University of Oxford.
    7. Stefan Dercon (QEH), "undated". "Vulnerability: a micro perspective," QEH Working Papers qehwps149, Queen Elizabeth House, University of Oxford.
    8. World Bank, 2012. "The Welfare Effects of Extreme Weather Events : Insights from Three APEC Case Studies," World Bank Publications - Reports 13039, The World Bank Group.
    9. Renata Baborska & Emilio Hernandez & Emiliano Magrini & Cristian Morales-Opazo, 2020. "The impact of financial inclusion on rural food security experience: A perspective from low-and middle-income countries," Review of Development Finance Journal, Chartered Institute of Development Finance, vol. 10(2), pages 1-18.
    10. Mariapia MENDOLA, 2005. "Farm households production theories: a review of institutional and behavioural responses," Departmental Working Papers 2005-01, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    11. Zimmerman, Frederick J. & Carter, Michael R., 2003. "Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints," Journal of Development Economics, Elsevier, vol. 71(2), pages 233-260, August.
    12. Chris Elbers & Jan Willem Gunning & Bill Kinsey, 2007. "Growth and Risk: Methodology and Micro Evidence," The World Bank Economic Review, World Bank, vol. 21(1), pages 1-20.
    13. Dercon, Stefan & Christiaensen, Luc, 2011. "Consumption risk, technology adoption and poverty traps: Evidence from Ethiopia," Journal of Development Economics, Elsevier, vol. 96(2), pages 159-173, November.
    14. Catherine Araujo Bonjean & Stéphanie Brunelin & Catherine Simonet, 2012. "Impact of climate related shocks on child's health in Burkina Faso," Working Papers halshs-00725253, HAL.
    15. Stefan Dercon, 2002. "Income Risk, Coping Strategies, and Safety Nets," The World Bank Research Observer, World Bank, vol. 17(2), pages 141-166, September.
    16. Hansen, James & Hellin, Jon & Rosenstock, Todd & Fisher, Eleanor & Cairns, Jill & Stirling, Clare & Lamanna, Christine & van Etten, Jacob & Rose, Alison & Campbell, Bruce, 2019. "Climate risk management and rural poverty reduction," Agricultural Systems, Elsevier, vol. 172(C), pages 28-46.
    17. Christian Rogg, 2006. "Asset Portfolios in Africa: Evidence from Rural Ethiopia," WIDER Working Paper Series RP2006-145, World Institute for Development Economic Research (UNU-WIDER).
    18. Nillesen, Eleonora & Verwim, Philip, 2010. "A Phoenix in Flames? Portfolio Choice and Violence in Civil War in Rural Burundi," WIDER Working Paper Series 044, World Institute for Development Economic Research (UNU-WIDER).
    19. Kibrom A. Abay & Nathaniel D. Jensen, 2020. "Access to markets, weather risk, and livestock production decisions: Evidence from Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 51(4), pages 577-593, July.
    20. Jeffrey A. Flory, 2011. "Micro-Savings & Informal Insurance in Villages: How Financial Deepening Affects Safety Nets of the Poor, A Natural Field Experiment," Working Papers 2011-008, Becker Friedman Institute for Research In Economics.

    More about this item

    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:bla:agecon:v:48:y:2017:i:1:p:77-89. 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: Wiley Content Delivery (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.