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Weather, labor reallocation and industrial production: evidence from India

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  • Colmer, Jonathan

Abstract

Temperature-driven reductions in the demand for agricultural labor are associated with increases in the share of workers engaged in manufacturing, suggesting that the ability of non-agricultural sectors to absorb workers may play a key role in attenuating the economic consequences of weather-driven changes in agricultural productivity. Exploiting firm-level variation in the propensity to absorb these workers, I find that this reallocation is associated with relative expansions in manufacturing activity in exible labor market environments. Counter-factual estimates suggest that in the absence of labor reallocation the aggregate consequences of temperature increases would be up to 40% higher.

Suggested Citation

  • Colmer, Jonathan, 2018. "Weather, labor reallocation and industrial production: evidence from India," LSE Research Online Documents on Economics 88695, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:88695
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    File URL: http://eprints.lse.ac.uk/88695/
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:wdevel:v:112:y:2018:i:c:p:205-219 is not listed on IDEAS
    2. Carillo, Mario Francesco, 2018. "Agricultural policy and long-run development: evidence from Mussolini's Battle for Grain," MPRA Paper 88941, University Library of Munich, Germany.

    More about this item

    Keywords

    labor reallocation; agricultural productivity; labor regulation; industrial production;

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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