Climate Change and Labour Allocation in Rural Mexico: Evidence from Annual Fluctuations in Weather. (26th June 2017)

• Record Type: Journal Article
• Authors: Jessoe, Katrina; Manning, Dale T.; Taylor, J. Edward
• Is Part Of: Economic journal. Volume 128:Number 608(2018)
• Page Start: 230
• Page End: 261
• Publication Date: 2017-06-26
• Subjects: Economics -- Periodicals; Économie politique -- Périodiques; 330.05
• DOI: 10.1111/ecoj.12448
• Languages: English
• ISSNs: 0013-0133

Abstract

Abstract : 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%.