Intra-Household Labor Supply, Migration, and Subsistence Constraints in a Risky Environment: Evidence from Rural El Salvador

Timothy Halliday

No 200920, Working Papers from University of Hawaii at Manoa, Department of Economics

Abstract: We use panel data from El Salvador to investigate migration and the intra-household allocation of labor as a strategy for coping with uninsured risk. Consistent with a model of a farm household with a binding subsistence constraint, we show that adverse agricultural productivity shocks increased both male migration to the US and the supply of male agricultural labor within the household in El Salvador. In contrast, after damage sustained from the 2001 earthquakes, female migration from El Salvador declined. This is consistent with the earthquakes increasing the demand for home production. Overall, household responses to uninsured risk appear to be consistent with a simple framework in which household members are allocated to sectors according to their comparative advantage. Finally, we show no evidence that the labor market in El Salvador is capable of helping rural Salvadoran households to buffer the effects of adverse shocks.

Keywords: Migration; Labor Supply; Insurance; Intra-Household Allocation; Subsistence Constraints (search for similar items in EconPapers)
JEL-codes: J22 J61 (search for similar items in EconPapers)
Pages: 57 pages
Date: 2009-12-16
New Economics Papers: this item is included in nep-ias and nep-mig
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://www.economics.hawaii.edu/research/workingpapers/WP_09-20R.pdf First revised version, 2009 (application/pdf)

Related works:
Journal Article: Intra-household labor supply, migration, and subsistence constraints in a risky environment: Evidence from rural El salvador (2012)
Working Paper: Intra-Household Labor Supply, Migration, and Subsistence Constraints in a Risky Environment: Evidence from Rural El Salvador (2010)
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