%0 Report
        %A Colmer, Jonathan
        %T Temperature, Labor Reallocation, and Industrial Production: Evidence from India
        %D 2021
        %8 2021 Jul
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 14604
        %U https://www.iza.org/index.php/publications/dp14604
        %X To what degree can labor reallocation mitigate the economic consequences of weather-driven agricultural productivity shocks? I estimate that temperature-driven reductions in the demand for agricultural labor in India are associated with increases in non-agricultural employment. This suggests that the ability of non-agricultural sectors to absorb workers may play a key role in attenuating the economic consequences of agricultural productivity shocks. Exploiting firm-level variation in the propensity to absorb workers, I estimate relative expansions in manufacturing output in more flexible labor markets. Estimates suggest that, in the absence of labor reallocation, local economic losses could be up to 69% higher.
        %K labor reallocation
%K industrial production
%K temperature