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The Labor Market as a Smoothing Device: Labor Supply Responses to Crop Loss

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Author Info

  • Lisa A. Cameron
  • Christopher Worswick

Abstract

The paper studies the way in which labor supply responses enable households to smooth consumption in the face of crop loss. The 1993 Indonesian Family Life Survey is unusual because it contains self-reported information on crop loss and on household responses to crop loss. Of those households that report a crop loss, 41.6% also report that they responded by taking an extra job. Using these self-reported measures, the authors find evidence which suggests that the income associated with this shock-induced labor supply is important in allowing the household to avoid reducing consumption expenditure. Household members, however, do not seem to increase their total hours of work. They appear to just reallocate their time from household farming to other labor market activities. Copyright Blackwell Publishing Ltd 2003.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 7 (2003)
Issue (Month): 2 (05)
Pages: 327-341

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Handle: RePEc:bla:rdevec:v:7:y:2003:i:2:p:327-341

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Cited by:
  1. Grimm, Michael, 2010. "Mortality and survivors' consumption," Economics Papers from University Paris Dauphine 123456789/4355, Paris Dauphine University.
  2. Takasaki, Yoshito & Barham, Bradford L. & Coomes, Oliver T., 2007. "Smoothing Income against Crop Flood Losses in Amazonia: Rain Forest or Rivers as a Safety Net," Staff Paper Series 518, University of Wisconsin, Agricultural and Applied Economics.
  3. World Bank, 2006. "Making the New Indonesia Work for the Poor," World Bank Other Operational Studies 8172, The World Bank.
  4. Chetty, Raj & Looney, Adam, 2006. "Consumption smoothing and the welfare consequences of social insurance in developing economies," Journal of Public Economics, Elsevier, vol. 90(12), pages 2351-2356, December.
  5. Ito, Takahiro & Kurosaki, Takashi, 2006. "Weather Risk and the Off-­Farm Labor Supply of Agricultural Households in India," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25774, International Association of Agricultural Economists.
  6. Jungho Kim & Alexia Prskawetz, 2010. "External Shocks, Household Consumption and Fertility in Indonesia," Population Research and Policy Review, Springer, vol. 29(4), pages 503-526, August.
  7. Berloffa, Gabriella & Modena, Francesca, 2013. "Income shocks, coping strategies, and consumption smoothing: An application to Indonesian data," Journal of Asian Economics, Elsevier, vol. 24(C), pages 158-171.
  8. Costas Meghir & Luigi Pistaferri, 2010. "Earnings, consumption and lifecycle choices," IFS Working Papers W10/05, Institute for Fiscal Studies.
  9. Jeremy D. Foltz & Ousman Gajigo, 2012. "Assessing the Returns to Education in The Gambia-super- †," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 21(4), pages 580-608, August.
  10. Mueller, Valerie & Quisumbing, Agnes, 2010. "Short- and long-term effects of the 1998 Bangladesh flood on rural wages," IFPRI discussion papers 956, International Food Policy Research Institute (IFPRI).
  11. Raj Chetty & Adam Looney, 2007. "Income Risk and the Benefits of Social Insurance: Evidence from Indonesia and the United States," NBER Chapters, in: Fiscal Policy and Management in East Asia, NBER-EASE, Volume 16, pages 99-121 National Bureau of Economic Research, Inc.
  12. Jeremy D. Foltz & Ousman Gajigo, 2012. "Working Paper 145 - Assessing the Returns to Education in the Gambia," Working Paper Series 376, African Development Bank.
  13. Ana María Ibáñez L. & Manuel Fernández & Ximena Peña, 2011. "Adjusting the Labor Supply to Mitigate Violent Shocks: Evidence from Rural Colombia," DOCUMENTOS CEDE 009246, UNIVERSIDAD DE LOS ANDES-CEDE.

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