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Intra-household labor supply, migration, and subsistence constraints in a risky environment: Evidence from rural El salvador

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  • Halliday, Timothy J.

Abstract

We investigate the use of intra-household labor allocation as a means of risk coping when subsistence constraints matter in rural El Salvador. We show that households increase the labor supply of its male members to the family farm and abroad in the US after being subjected to adverse agricultural productivity shocks. The latter is the result of a standard substitution effect, whereas the former is the result of subsistence concerns. Theoretically, these results are not at odds with each other if these events differentially impacted rich and poor households. We also show that the earthquakes of 2001 resulted in large reductions in the number of female members who were sent abroad and large increases in hours of domestic labor supplied by female members. We argue that this result is a consequence of subsistence motives because female labor supply at home increased despite lower remuneration.

Suggested Citation

  • Halliday, Timothy J., 2012. "Intra-household labor supply, migration, and subsistence constraints in a risky environment: Evidence from rural El salvador," European Economic Review, Elsevier, vol. 56(6), pages 1001-1019.
  • Handle: RePEc:eee:eecrev:v:56:y:2012:i:6:p:1001-1019
    DOI: 10.1016/j.euroecorev.2012.04.001
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    Cited by:

    1. Gignoux, Jérémie & Menéndez, Marta, 2016. "Benefit in the wake of disaster: Long-run effects of earthquakes on welfare in rural Indonesia," Journal of Development Economics, Elsevier, vol. 118(C), pages 26-44.
    2. Azreen Karim & Ilan Noy, 2016. "Poverty And Natural Disasters — A Qualitative Survey Of The Empirical Literature," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-36, March.
    3. Mitrut, Andreea & Wolff, François-Charles, 2014. "Remittances after natural disasters: Evidence from the 2004 Indian tsunami," Working Papers in Economics 604, University of Gothenburg, Department of Economics.
    4. Ingrid Dallmann & Katrin Millock, 2013. "Climate Variability and Internal Migration: A Test on Indian Inter-State Migration," Documents de travail du Centre d'Economie de la Sorbonne 13045r, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne, revised Mar 2016.
    5. Sawada, Yasuyuki & Takasaki, Yoshito, 2017. "Natural Disaster, Poverty, and Development: An Introduction," World Development, Elsevier, vol. 94(C), pages 2-15.
    6. repec:oup:cesifo:v:63:y:2017:i:4:p:353-385. is not listed on IDEAS
    7. Pascaline Dupas & Jonathan Robinson, 2013. "Daily Needs, Income Targets and Labor Supply: Evidence from Kenya," NBER Working Papers 19264, National Bureau of Economic Research, Inc.
    8. repec:bla:intmig:v:50:y:2016:i:4:p:1046-1075 is not listed on IDEAS
    9. Mahajan, Kanika, 2017. "Rainfall Shocks and the Gender Wage Gap: Evidence from Indian Agriculture," World Development, Elsevier, vol. 91(C), pages 156-172.

    More about this item

    Keywords

    Migration; Labor supply; Insurance; Intra-household allocation; Subsistence constraints; Time allocation;

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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