Temperature, labor reallocation and industrial production: evidence from India

Jonathan Colmer (j.colmer@virginia.edu)

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: To what degree can labor reallocation mitigate the economic consequences of weather-driven agricultural productivity shocks? I estimate that temperature-driven reductions in the demand for agricultural labor in India are associated with increases in non-agricultural employment. This suggests that the ability of non-agricultural sectors to absorb workers may play a key role in attenuating the economic consequences of agricultural productivity shocks. Exploiting firm-level variation in the propensity to absorb workers, I estimate relative expansions in manufacturing output in more flexible labor markets. Estimates suggest that, in the absence of labor reallocation, local economic losses could be up to 69% higher.

JEL-codes: F16 J21 O13 Q56 (search for similar items in EconPapers)
Date: 2018-05
New Economics Papers: this item is included in nep-dev, nep-env and nep-lab
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Citations: View citations in EconPapers (35)

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Related works:
Journal Article: Temperature, Labor Reallocation, and Industrial Production: Evidence from India (2021)
Working Paper: Temperature, Labor Reallocation, and Industrial Production: Evidence from India (2021)
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