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Intra-household labor supply, migration, and subsistence constraints in a risky environment: Evidence from rural El salvador

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  • Halliday, Timothy J.
Abstract
We investigate the use of intra-household labor allocation as a means of risk coping when subsistence constraints matter in rural El Salvador. We show that households increase the labor supply of its male members to the family farm and abroad in the US after being subjected to adverse agricultural productivity shocks. The latter is the result of a standard substitution effect, whereas the former is the result of subsistence concerns. Theoretically, these results are not at odds with each other if these events differentially impacted rich and poor households. We also show that the earthquakes of 2001 resulted in large reductions in the number of female members who were sent abroad and large increases in hours of domestic labor supplied by female members. We argue that this result is a consequence of subsistence motives because female labor supply at home increased despite lower remuneration.

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  • Halliday, Timothy J., 2012. "Intra-household labor supply, migration, and subsistence constraints in a risky environment: Evidence from rural El salvador," European Economic Review, Elsevier, vol. 56(6), pages 1001-1019.
    • Handle: RePEc:eee:eecrev:v:56:y:2012:i:6:p:1001-1019
    DOI: 10.1016/j.euroecorev.2012.04.001
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    Cited by:

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    2. Diana De Alwis & Ilan Noy, 2019. "Sri Lankan households a decade after the Indian Ocean tsunami," Review of Development Economics, Wiley Blackwell, vol. 23(2), pages 1000-1026, May.
    3. Afridi, Farzana & Mahajan, Kanika & Sangwan, Nikita, 2022. "The gendered effects of droughts: Production shocks and labor response in agriculture," Labour Economics, Elsevier, vol. 78(C).
    4. Afridi, Farzana & Mahajan, Kanika & Sangwan, Nikita, 2021. "The Gendered Effects of Climate Change: Production Shocks and Labor Response in Agriculture," IZA Discussion Papers 14568, Institute of Labor Economics (IZA).
    5. Mitrut, Andreea & Wolff, François-Charles, 2014. "Remittances after natural disasters: Evidence from the 2004 Indian tsunami," Working Papers in Economics 604, University of Gothenburg, Department of Economics.
    6. Veeshan Rayamajhee & Alok K. Bohara & Virgil Henry Storr, 2020. "Ex-Post Coping Responses and Post-Disaster Resilience: a Case from the 2015 Nepal Earthquake," Economics of Disasters and Climate Change, Springer, vol. 4(3), pages 575-599, October.
    7. Ingrid Dallmann & Katrin Millock, 2013. "Climate Variability and Internal Migration: A Test on Indian Inter-State Migration," Documents de travail du Centre d'Economie de la Sorbonne 13045r, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne, revised Mar 2016.
    8. Tam B. Vu & Ilan Noy, 2018. "Natural Disasters and Firms in Vietnam," Pacific Economic Review, Wiley Blackwell, vol. 23(3), pages 426-452, August.
    9. Sawada, Yasuyuki & Takasaki, Yoshito, 2017. "Natural Disaster, Poverty, and Development: An Introduction," World Development, Elsevier, vol. 94(C), pages 2-15.
    10. Vitellozzi, Sveva & Claudia Giannelli, Gianna, 2024. "Thriving in the rain: natural shocks, time allocation, and women’s empowerment in Bangladesh," World Development, Elsevier, vol. 181(C).
    11. Cristina Cattaneo, 2016. "Opting in to Opt out? Emigration and Group Participation in Albania," International Migration Review, Wiley Blackwell, vol. 50(4), pages 1046-1075, December.
    12. Bravo-Ureta, Boris E. & Njuki, Eric & Palacios, Ana Claudia & Salazar, Lina, 2022. "Agricultural Productivity in El Salvador: A Preliminary Analysis," IDB Publications (Working Papers) 11984, Inter-American Development Bank.
    13. Azreen Karim & Ilan Noy, 2016. "Poverty And Natural Disasters — A Qualitative Survey Of The Empirical Literature," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-36, March.
    14. Eugenia Chernina, 2019. "Natural Shocks And Migration Decisions: The Case Of Kyrgyzstan," HSE Working papers WP BRP 214/EC/2019, National Research University Higher School of Economics.
    15. Ingrid Dallmann & Katrin Millock, 2016. "Climate Variability and Internal Migration: A Test on Indian Inter-State Migration," Post-Print halshs-00825807, HAL.
    16. Michael Berlemann & Max Friedrich Steinhardt, 2017. "Climate Change, Natural Disasters, and Migration—a Survey of the Empirical Evidence," CESifo Economic Studies, CESifo Group, vol. 63(4), pages 353-385.
    17. Pascaline Dupas & Jonathan Robinson, 2013. "Daily Needs, Income Targets and Labor Supply: Evidence from Kenya," NBER Working Papers 19264, National Bureau of Economic Research, Inc.
    18. Noy, Ilan & Karim, Azreen, 2013. "Poverty, inequality and natural disasters – A survey," Working Paper Series 18793, Victoria University of Wellington, School of Economics and Finance.
    19. Mahajan, Kanika, 2017. "Rainfall Shocks and the Gender Wage Gap: Evidence from Indian Agriculture," World Development, Elsevier, vol. 91(C), pages 156-172.

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    More about this item

    Keywords

    Migration; Labor supply; Insurance; Intra-household allocation; Subsistence constraints; Time allocation;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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