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Temperature shocks and rural labour markets: evidence from India

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  • Bhaskar Jyoti Neog

    (IIT Jammu)

Abstract

The present study contributes to the literature on labour reallocation and adaptation in response to weather anomalies. Existing literature on labour mobility and weather shocks primarily focus on migration to the neglect of worker commuting as a potential adaptation strategy. Utilizing individual-level panel data from the Village Dynamics in South Asia (VDSA) dataset for the year 2010–2014, the present study explores the impact of weather anomalies on migration and commuting as well as participation and earnings in the non-agricultural sector. The fixed effects regression results show that negative temperature shocks induce a flow of labour outside the village through labour out-migration and longer-distance commutes. Temperature stress also negatively impacts non-agricultural earnings. The effects of temperature shocks are heterogeneous across the baseline climate of the villages suggesting evidence of adaptation to weather shocks. The study emphasizes the crucial role of labour mobility and adaptation in coping with weather shocks. The paper concludes with some policy suggestions.

Suggested Citation

  • Bhaskar Jyoti Neog, 2022. "Temperature shocks and rural labour markets: evidence from India," Climatic Change, Springer, vol. 171(1), pages 1-20, March.
    • Handle: RePEc:spr:climat:v:171:y:2022:i:1:d:10.1007_s10584-022-03334-x
    DOI: 10.1007/s10584-022-03334-x
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    More about this item

    Keywords

    Climate change; Weather; Migration; Commuting; Non-agriculture; Adaptation;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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