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

Jessoe Katrina | Zendy; Manning Dale T. | Zendy; Taylor J. Edward | Zendy

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

Author(s) -

Jessoe Katrina,

Manning Dale T.,

Taylor J. Edward

Publication year - 2018

Publication title -

the economic journal

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 4.683

H-Index - 160

eISSN - 1468-0297

pISSN - 0013-0133

DOI - 10.1111/ecoj.12448

Subject(s) - climate change , extreme weather , work (physics) , economics , extreme heat , wage , heat wave , labour economics , demographic economics , mechanical engineering , ecology , engineering , biology

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%.

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