The Labor Market as a Smoothing Device: Labor Supply Responses to Crop Loss

15 Pages Posted: 10 Jun 2003

See all articles by Lisa A. Cameron

Lisa A. Cameron

University of Melbourne - Melbourne Institute of Applied Economic and Social Research; IZA Institute of Labor Economics; J-PAL

Christopher Worswick

Carleton University - Department of Economics

Abstract

The paper studies the way in which labor supply responses enable households to smooth consumption in the face of crop loss. The 1993 Indonesian Family Life Survey is unusual because it contains self-reported information on crop loss and on household responses to crop loss. Of those households that report a crop loss, 41.6% also report that they responded by taking an extra job. Using these self-reported measures, the authors find evidence which suggests that the income associated with this shock-induced labor supply is important in allowing the household to avoid reducing consumption expenditure. Household members, however, do not seem to increase their total hours of work. They appear to just reallocate their time from household farming to other labor market activities.

Suggested Citation

Cameron, Lisa A. and Worswick, Christopher, The Labor Market as a Smoothing Device: Labor Supply Responses to Crop Loss. Available at SSRN: https://ssrn.com/abstract=411200

Lisa A. Cameron (Contact Author)

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

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Christopher Worswick

Carleton University - Department of Economics ( email )

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