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

Timothy Halliday

European Economic Review, 2012, vol. 56, issue 6, 1001-1019

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.

Keywords: Migration; Labor supply; Insurance; Intra-household allocation; Subsistence constraints; Time allocation (search for similar items in EconPapers)
JEL-codes: J22 J61 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (18)

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Related works:
Working Paper: Intra-Household Labor Supply, Migration, and Subsistence Constraints in a Risky Environment: Evidence from Rural El Salvador (2010)
Working Paper: Intra-Household Labor Supply, Migration, and Subsistence Constraints in a Risky Environment: Evidence from Rural El Salvador (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:56:y:2012:i:6:p:1001-1019

DOI: 10.1016/j.euroecorev.2012.04.001

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