Environmental Shocks and Agriculture: Implications of Floods on Labor Market Outcomes

33 Pages Posted: 26 Mar 2024

See all articles by Vikrant Kamble

Vikrant Kamble

Arizona State University (ASU) - Morrison School of Agribusiness and Resource Management

Jayash Paudel

University of Oklahoma - Department of Economics

Ashok K. Mishra

Arizona State University (ASU) - W.P. Carey School of Business

Date Written: February 18, 2024

Abstract

Floods often displace people and exacerbate their access to finance, affecting the livelihood of daily wage workers in least-developed countries. In August 2017, Nepal experienced the heaviest rainfall in more than 60 years, severely flooding about 80 percent of the land in the southern part of the country. Using the TWFE approach and an event study design, we evaluate the impact of severe flooding on the wages of agricultural workers. We show that the 2017 floods resulted in a 10-11 percent decrease in cash wages among agricultural households while in-kind wages of agricultural laborers increased significantly after the floods, implying that in-kind wages helped mitigate the adverse effects of floods on cash wages. We investigate changes in assistance, loan-seeking behavior, loan repayment, and collection behavior as a mechanism leading to the risk-mitigating behavior by farmers.

Keywords: Natural disasters; Floods; Agricultural laborers; Cash wages; In-kind wages

JEL Classification: Q12, Q15, Q51, Q54

Suggested Citation

Kamble, Vikrant and Paudel, Jayash and Mishra, Ashok K., Environmental Shocks and Agriculture: Implications of Floods on Labor Market Outcomes (February 18, 2024). Available at SSRN: https://ssrn.com/abstract=4730316 or http://dx.doi.org/10.2139/ssrn.4730316

Vikrant Kamble (Contact Author)

Arizona State University (ASU) - Morrison School of Agribusiness and Resource Management ( email )

Mesa, AZ
United States
4049214427 (Phone)

HOME PAGE: http://vikrantkkamble.com

Jayash Paudel

University of Oklahoma - Department of Economics ( email )

729 Elm Avenue
Norman, OK 73019-2103
United States

Ashok K. Mishra

Arizona State University (ASU) - W.P. Carey School of Business ( email )

235M Santan Hall
Tempe, AZ 85287-3706
United States
4807271288 (Phone)
4807271961 (Fax)

HOME PAGE: http://https://apps.wpcarey.asu.edu/directory/people/profile.cfm?person=2259044

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