Rainfall Variability, Occupational Choice, and Welfare in Rural Bangladesh

48 Pages Posted: 20 Apr 2016

Date Written: July 1, 2012

Abstract

This study investigates the choice of occupational focus versus diversification between household members in rural Bangladesh as an autonomous and proactive adaptation strategy against ex ante local rainfall variability risks. The analysis combines nationally representative household level survey data with historical climate variability information at the Upazila level. The authors note that flood prone Upazilas may face reduced risks from local rainfall variability as compared with non-flood prone Upazilas. They find that two members of the same household are less likely to be self-employed in agriculture if they live in an area with high local rainfall variability. However, the occupational diversification strategy comes at a cost to households in terms of consumption welfare. The paper considers the effects of three policy actions, providing access to credit, safety net, and market. Access to market appears to be more effective in reducing the likelihood of costly within-household occupational diversification as an ex ante climate risk-reducing strategy as compared with access to credit and safety net.

Keywords: Science of Climate Change, Hazard Risk Management, Climate Change Mitigation and Green House Gases, Housing & Human Habitats, Water Conservation

Suggested Citation

Bandyopadhyay, Sushenjit and Skoufias, Emmanuel, Rainfall Variability, Occupational Choice, and Welfare in Rural Bangladesh (July 1, 2012). World Bank Policy Research Working Paper No. 6134, Available at SSRN: https://ssrn.com/abstract=2110095

Sushenjit Bandyopadhyay (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Emmanuel Skoufias

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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