Changing Climate, Mechanization, and Gender Wages in Indian Agriculture

This paper explores the intricate interplay between farm mechanisation, climate change and rural farm wages across genders in India. By employing panel regression models on district-level data for 26 years, our findings reveal that both physical (density of tractors, power tillers, pump sets) and structural (cropping and irrigation intensity) farm mechanisation positively impact farm wages for both genders. However, chemical mechanisation, specifically intensive fertiliser use, negatively influences female wage rates while positively affecting male wages. Additionally, climatic risks, such as high temperatures and deviations in rainfall, have significantly detrimental effects on farm wages. Considering other socioeconomic factors, our study identifies that occupational diversity and access to banks positively influence farm wages, while gender literacy gaps have a negative impact. The policy implication derived from our research advocates the promotion of all three forms of farm mechanisation to enhance productivity. However, this mechanisation should be tailored to adapt to evolving climate conditions and social and gender-specific needs, ensuring a balanced and inclusive approach to agricultural development.