TY  - RPRT
        AU  - Colmer, Jonathan
        TI  - Temperature, Labor Reallocation, and Industrial Production: Evidence from India
        PY  - 2021/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14604
        UR  - https://www.iza.org/publications/dp14604
        AB  - 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.
        KW  - labor reallocation
KW  - industrial production
KW  - temperature
        ER  -