@TechReport{iza:izadps:dp14604, author={Colmer, Jonathan}, title={Temperature, Labor Reallocation, and Industrial Production: Evidence from India}, year={2021}, month={Jul}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={14604}, url={https://www.iza.org/publications/dp14604}, abstract={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.}, keywords={labor reallocation;industrial production;temperature}, }