Rainfall variability, occupational choice, and welfare in rural Bangladesh
AbstractThis study investigates the choice of occupational focus versus diversification between household members in rural Bangladesh as an autonomous and proactive adaptation strategy against ex ante local rainfall variability risks. The analysis combines nationally representative household level survey data with historical climate variability information at the Upazila level. The authors note that flood prone Upazilas may face reduced risks from local rainfall variability as compared with non-flood prone Upazilas. They find that two members of the same household are less likely to be self-employed in agriculture if they live in an area with high local rainfall variability. However, the occupational diversification strategy comes at a cost to households in terms of consumption welfare. The paper considers the effects of three policy actions, providing access to credit, safety net, and market. Access to market appears to be more effective in reducing the likelihood of costly within-household occupational diversification as an ex ante climate risk-reducing strategy as compared with access to credit and safety net.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 6134.
Date of creation: 01 Jul 2012
Date of revision:
Science of Climate Change; Hazard Risk Management; Climate Change Mitigation and Green House Gases; Housing&Human Habitats; Water Conservation;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-07-29 (Agricultural Economics)
- NEP-ALL-2012-07-29 (All new papers)
- NEP-DEV-2012-07-29 (Development)
- NEP-ENV-2012-07-29 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"Wealth, weather risk, and the composition and profitability of agricultural investments,"
Policy Research Working Paper Series
1055, The World Bank.
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- Nidhiya Menon & Narayanan Subramanian, 2008. "Learning, diversification and the nature of risk," Economic Theory, Springer, vol. 35(1), pages 117-145, April.
- 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.
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