Open AccessClimate 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 , work (physics) , economics , wage , extreme weather , extreme heat , 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%.