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Weather Shocks and Labor Allocation: Evidence from Rural Brazil

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  • Danyelle Branco
  • José Féres

Abstract

We examine the effects of rainfall shocks on household work decisions in Brazil. We show that rural farming households increase labor supply in non‐agricultural sectors during drought episodes. An additional drought month per year is associated with greater likelihood of holding more than one job, lower share of agricultural employment, and more time spent performing a secondary job. Together, these findings suggest that households alter their labor decisions to mitigate the consequences of weather shocks.

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  • 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.
  • Handle: RePEc:wly:ajagec:v:103:y:2021:i:4:p:1359-1377
    DOI: 10.1111/ajae.12171
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    3. Ariel Ortiz-Bobea, 2021. "Climate, Agriculture and Food," Papers 2105.12044, arXiv.org.
    4. C. A. K. Lovell, 2021. "The Pandemic, The Climate, and Productivity," CEPA Working Papers Series WP112021, School of Economics, University of Queensland, Australia.
    5. Njuki, Eric, 2021. "Nonlinear weather and climate-induced effects on hired farm labor wages: Evidence from the U.S. Cornbelt," 2021 Annual Meeting, August 1-3, Austin, Texas 313959, Agricultural and Applied Economics Association.
    6. Musungu, Arnold L. & Kubik, Zaneta & Qaim, Matin, 2023. "Drought Shocks and Labor Reallocation in Rural Africa: Evidence from Ethiopia," Discussion Papers 338675, University of Bonn, Center for Development Research (ZEF).
    7. Homma,Kirara & Abu Hayat Md. Saiful Islam & Matsuura,Masanori & Bethelhem Legesse Debela, 2024. "Weather shocks and child nutritional status in rural households in Bangladesh: Does labor allocation have a role to play?," IDE Discussion Papers 907, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    8. Agamile, Peter, 2023. "Intra-spousal labor supply responses to price shocks in Uganda," 2023 Annual Meeting, July 23-25, Washington D.C. 335811, Agricultural and Applied Economics Association.
    9. Mulungu, Kelvin & Kilimani, Nicholas, 2023. "Does forest access reduce reliance on costly shock-coping strategies? Evidence from Malawi," Ecological Economics, Elsevier, vol. 209(C).
    10. Luis Guillermo Becerra-Valbuena, 2021. "Droughts and Agricultural Adaptation to Climate Change," PSE Working Papers halshs-03420657, HAL.
    11. Homma, Kirara & Islam, Abu Hayat Md. Saiful & Matsuura, Masanori & Legesse Debela, Bethelhem, 2024. "Weather shocks and child nutritional status in rural Bangladesh: Does labor allocation have a role to play?," DARE Discussion Papers 2401, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    12. Silvio Daidone & Francisco Pereira Fontes, 2023. "The role of social protection in mitigating the effects of rainfall shocks. Evidence from Ethiopia," Journal of Productivity Analysis, Springer, vol. 60(3), pages 315-332, December.
    13. Fang, Ming & Jin, Songqing & Deininger, Klaus W., 2022. "Climate, land productivity and agricultural adaptation in Ukraine," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322437, Agricultural and Applied Economics Association.
    14. Rodrigo Pérez-Silva & Mayarí Castillo & Chiara Cazzuffi, 2023. "Droughts and Local Labor Markets. Studying Heterogenous Effects on Women and Indigenous People in Chile," Economics of Disasters and Climate Change, Springer, vol. 7(2), pages 281-302, July.
    15. Luis Guillermo Becerra-Valbuena, 2021. "Droughts and Agricultural Adaptation to Climate Change," Working Papers halshs-03420657, HAL.
    16. Boyd, Chris, 2021. "Climate, Mothers’ Time-Use, and Child Nutrition: Evidence from Rural Uganda," 2021 Conference, August 17-31, 2021, Virtual 315906, International Association of Agricultural Economists.

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