Long-term impacts of droughts on labour markets in developing countries: Evidence from Brazil

Valerie A. Mueller, Daniel E. Osgood

Research output: Contribution to journalArticlepeer-review

25 Scopus citations

Abstract

Climate shocks have well-documented impacts on the short-term welfare of rural households in developing countries. We investigate the impact of droughts on Brazilian labour markets. We find long-term rural wage losses beyond the immediate impact of the drought, with affected workers taking five years to catch up with their peers. Findings are robust to model specification. The severity of the losses varies with the dependence on agricultural income, supporting the notion of diversifying portfolio strategies in rural areas to reduce climate-related income risk.

Original languageEnglish (US)
Pages (from-to)1651-1662
Number of pages12
JournalJournal of Development Studies
Volume45
Issue number10
DOIs
StatePublished - Nov 1 2009
Externally publishedYes

ASJC Scopus subject areas

  • Development

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