Rainfall Forecasts, Weather, and Wages over the Agricultural Production Cycle
We look at the effects of rainfall forecasts and realized rainfall on equilibrium agricultural wages over the course of the agricultural production cycle. We show theoretically that a forecast of good weather can lower wages in the planting stage, by lowering ex ante out-migration, and can exacerbate the negative impact of adverse weather on harvest-stage wages. Using Indian household panel data describing early-season migration and district-level planting- and harvest-stage wages over the period 2005–2010, we find results consistent with the model, indicating that rainfall forecasts improve labor allocations on average but exacerbate wage volatility because they are imperfect.
Volume (Year): 104 (2014)
Issue (Month): 5 (May)
|Contact details of provider:|| Web page: https://www.aeaweb.org/aer/|
More information through EDIRC
|Order Information:||Web: https://www.aeaweb.org/subscribe.html|
References listed on IDEAS
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.:
- Melanie Morten, 2016. "Temporary Migration and Endogenous Risk Sharing in Village India," NBER Working Papers 22159, National Bureau of Economic Research, Inc.
- Mobarak, Ahmed Musfiq & Rosenzweig, Mark, 2013.
"Risk, Insurance and Wages in General Equilibrium,"
127, Yale University, Department of Economics.
- Ahmed Mushfiq Mobarak & Mark Rosenzweig, 2014. "Risk, Insurance and Wages in General Equilibrium," NBER Working Papers 19811, National Bureau of Economic Research, Inc.
- Mark Rosenzweig & Ahmed Musfiq Mobarak, 2013. "Risk, Insurance and Wages in General Equilibrium," Working Papers 1035, Economic Growth Center, Yale University.
- Mobarak, Ahmed Mushfiq & Rosenzweig, Mark, 2014. "Risk, Insurance and Wages in General Equilibrium," CEPR Discussion Papers 9797, C.E.P.R. Discussion Papers.
- Seema Jayachandran, 2006. "Selling Labor Low: Wage Responses to Productivity Shocks in Developing Countries," Journal of Political Economy, University of Chicago Press, vol. 114(3), pages 538-575, June.
- Seema Jayachandran, 2005. "Selling Labor Low: Wage Responses to Productivity Shocks in Developing Countries," UCLA Economics Online Papers 370, UCLA Department of Economics.
- Anjini Kochar, 1999. "Smoothing Consumption by Smoothing Income: Hours-of-Work Responses to Idiosyncratic Agricultural Shocks in Rural India," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 50-61, February. Full references (including those not matched with items on IDEAS)