Abstract
We find that large short-term precipitation shocks damage the long-term income of households that have permanently migrated from rural to urban areas. This outcome is consistent with the behavior of credit-constrained rural households who are willing to accept lower long-term income in urban areas following the depletion of their productive assets during an adverse shock. Our empirical evidence suggests that there may be a link between large precipitation shocks in rural areas and urban poverty. Further exploration is warranted on the mechanisms by which natural disasters cause these long-term losses.
Original language | English (US) |
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Pages (from-to) | 573-586 |
Number of pages | 14 |
Journal | Agricultural Economics |
Volume | 40 |
Issue number | 5 |
DOIs | |
State | Published - Sep 2009 |
Externally published | Yes |
Keywords
- Agriculture
- Climate
- Household income
- Migrants
- Shocks
ASJC Scopus subject areas
- Agronomy and Crop Science
- Economics and Econometrics