Weather, labor reallocation and industrial production: evidence from India

Colmer, Jonathan (2018) Weather, labor reallocation and industrial production: evidence from India. CEP Discussion Papers (CEPDP1544). Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Abstract

Temperature-driven reductions in the demand for agricultural labor are associated with increases in the share of workers engaged in manufacturing, suggesting that the ability of non-agricultural sectors to absorb workers may play a key role in attenuating the economic consequences of weather-driven changes in agricultural productivity. Exploiting firm-level variation in the propensity to absorb these workers, I find that this reallocation is associated with relative expansions in manufacturing activity in exible labor market environments. Counter-factual estimates suggest that in the absence of labor reallocation the aggregate consequences of temperature increases would be up to 40% higher.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk/
Additional Information:	© 2018 The Authors
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor S Agriculture > S Agriculture (General)
JEL classification:	J - Labor and Demographic Economics > J6 - Mobility, Unemployment, and Vacancies > J62 - Job, Occupational, and Intergenerational Mobility O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate; Natural Disasters
Sets:	Research centres and groups > Centre for Economic Performance (CEP)
Series:	Working Papers > CEP Discussion Papers
Date Deposited:	26 Jun 2018 16:11
Last Modified:	26 Jun 2018 16:11
Funders:	Economic and Social Research Council
URI:	http://eprints.lse.ac.uk/id/eprint/88695

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