Income diversification and income inequality: household responses to the 2013 floods in Pakistan

Eskander, Shaikh M.S.U. ORCID: 0000-0002-3325-5486 and Fankhauser, Sam ORCID: 0000-0003-2100-7888 (2022) Income diversification and income inequality: household responses to the 2013 floods in Pakistan. Sustainability (Switzerland), 14 (1). ISSN 2071-1050

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Abstract

In this paper we investigate the economic response of rural households to the 2013 floods in Pakistan. The case study illustrates the important roles of labor supply adjustments and income diversification in coping with climate-related risks. Using detailed household panel data that were collected before and after the 2013 floods, we find that the exposure to flood results in lower participation in farm activities. The overall effects are decreased diversification in the sources of income and ambiguous reduction in inequality which is associated with overall declines in incomes. These changes could be locked in if affected households do not have sufficient assets to resume farming. The results suggest intervention points for public policy, related to labor mobility and access to capital.

Item Type:	Article
Official URL:	https://www.mdpi.com/journal/sustainability
Additional Information:	© 2022 The Authors. Licensee MDPI, Basel, Switzerland.
Divisions:	Economics Grantham Research Institute
Subjects:	H Social Sciences > HC Economic History and Conditions G Geography. Anthropology. Recreation > GE Environmental Sciences
Date Deposited:	12 Jan 2022 16:09
Last Modified:	16 Nov 2024 07:42
URI:	http://eprints.lse.ac.uk/id/eprint/113415

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