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Weather Risk, Wages in Kind, and the Off-Farm Labor Supply of Agricultural Households in a Developing Country

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  • Takahiro Ito
  • Takashi Kurosaki

Abstract

This article investigates the effects of weather risk on the off-farm labor supply of agricultural households in a developing country, distinguishing different types of off-farm labor markets. A multivariate two-limit tobit model is applied to data from India. The regression results show that the share of the off-farm labor supply increases with weather risk, the increase is much larger in the case of nonagricultural work than in the case of agricultural wage work, and the increase is much larger in the case of agricultural wages paid in kind than in the cash wage case, suggesting farmers' considerations of food security. Copyright 2007, Oxford University Press.

Suggested Citation

  • Takahiro Ito & Takashi Kurosaki, 2007. "Weather Risk, Wages in Kind, and the Off-Farm Labor Supply of Agricultural Households in a Developing Country," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 697-710.
    • Handle: RePEc:oup:ajagec:v:91:y:2007:i:3:p:697-710
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2009.01270.x
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    References listed on IDEAS

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    1. Anjini Kochar, 1997. "Does Lack of Access to Formal Credit Constrain Agricultural Production? Evidence from the Land Tenancy Market in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 754-763.
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    Cited by:

    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. Kevin Donovan, 2011. "Risk, Farm Ownership, and International Productivity Differences," 2011 Meeting Papers 1088, Society for Economic Dynamics.
    3. Precious Akampumuza & Hirotaka Matsuda, 2017. "Weather Shocks and Urban Livelihood Strategies: The Gender Dimension of Household Vulnerability in the Kumi District Of Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 53(6), pages 953-970, June.
    4. Veronesi, Marcella & Reutemann, Tim & Zabel, Astrid & Engel, Stefanie, 2015. "Designing REDD+ schemes when forest users are not forest landowners: Evidence from a survey-based experiment in Kenya," Ecological Economics, Elsevier, vol. 116(C), pages 46-57.
    5. Afridi, Farzana & Mahajan, Kanika & Sangwan, Nikita, 2021. "The Gendered Effects of Climate Change: Production Shocks and Labor Response in Agriculture," IZA Discussion Papers 14568, Institute of Labor Economics (IZA).
    6. Yaumidin, Umi Karomah, 2020. "Farmers’ responses to unexpected weather variability in developing countries: The case of Indonesia," 2020 Conference (64th), February 12-14, 2020, Perth, Western Australia 305233, Australian Agricultural and Resource Economics Society.
    7. Kurosaki, Takashi, 2013. "Vulnerability of Household Consumption to Floods and Droughts in Developing Countries: Evidence from Pakistan," CEI Working Paper Series 2012-10, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    8. Günther Fink & B. Kelsey Jack & Felix Masiye, 2020. "Seasonal Liquidity, Rural Labor Markets, and Agricultural Production," American Economic Review, American Economic Association, vol. 110(11), pages 3351-3392, November.
    9. 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.
    10. Ito, Takahiro, 2009. "Caste discrimination and transaction costs in the labor market: Evidence from rural North India," Journal of Development Economics, Elsevier, vol. 88(2), pages 292-300, March.
    11. Kurosaki, Takashi, 2011. "Wages in Kind and Economic Development: Historical and Contemporary Evidence from Asia," PRIMCED Discussion Paper Series 11, Institute of Economic Research, Hitotsubashi University.
    12. Ibáñez, Ana María & Muñoz, Juan Carlos & Verwimp, Philip, 2013. "Abandoning Coffee under the Threat of Violence and the Presence of Illicit Crops. Evidence from Colombia," Documentos CEDE Series 161356, Universidad de Los Andes, Economics Department.
    13. Fink, Günther & Jack, Kelsey & Masiye, Felix, 2014. "Seasonal Credit Constraints and Agricultural Labor Supply: Evidence from Zambia," IZA Discussion Papers 8657, Institute of Labor Economics (IZA).
    14. 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.
    15. Witt, Rudolf & Waibel, Hermann, 2011. "Constraints to diversification of poor fishery-dependent households in Cameroon," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 6(2), pages 1-21, September.
    16. Takashi KUROSAKI, 2008. "Comment on “Economic Reforms and Human Development Indicators in India”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(2), pages 313-314, December.
    17. Djanibekov, Utkur & Djanibekov, Nodir & Khamzina, Asia, 2012. "CDM afforestation for managing water, energy and rural income nexus in irrigated drylands," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126765, International Association of Agricultural Economists.

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    More about this item

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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