Climate Change and Labour Allocation in Rural Mexico: Evidence from Annual Fluctuations in Weather

Katrina Jessoe, Dale Manning and J. Edward Taylor

Economic Journal, 2018, vol. 128, issue 608, 230-261

Abstract: This article evaluates the effects of annual fluctuations in weather on employment in rural Mexico to gain insight into the potential labour market implications of climate change. Using a 28†year panel on individual employment, we find that years with a high occurrence of heat lead to a reduction in local employment, particularly for wage work and non†farm labour. Extreme heat also increases migration domestically from rural to urban areas and internationally to the US. A medium emissions scenario implies that increases in extreme heat may decrease local employment by up to 1.4% and climate change may increase migration by 1.4%.

Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:wly:econjl:v:128:y:2018:i:608:p:230-261

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