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Adapting to climate change: Long term effects of drought on local labor markets

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dc.description.abstract This paper examines short and long-run impacts of drought on local development in Brazil. Drawing on over 100 years of rainfall data, we construct contemporaneous and historical drought indices for more than 3.5 thousand local areas and combine them with population census data spanning the period 1970-2010. Using a difference-in-differences design, we find that a drought reduces current agricultural value added by 11%, on average. This reduces labor demand. In the short-run wages fall by 3.4 percent; in the long-run employment declines by 12 percent. Drought also induces outmigration from the areas most frequently affected, resulting in population decline. en
dc.title Adapting to climate change: Long term effects of drought on local labor markets en
dc.contributor.author Bastos, Paulo
dc.contributor.author Busso, Matias
dc.contributor.author Miller, Sebastian
dc.date.accessioned 2014-10-31T22:14:38Z
dc.date.available 2014-10-31T22:14:38Z
dc.date.issued 2014-10-31
dc.identifier.uri http://hdl.handle.net/123456789/48638
lacea.language.supported en
dc.description Working paper
dc.language.iso en
dc.subject Local labor markets
dc.subject Migration
dc.subject Drought
dc.subject Climate change
dc.type Article


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