Effects of Weather Shocks on Labor Market Outcomes: Evidence from Argentina
Date
2024-07
Authors
de Marcos, Inés
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Caruso, Germán
Tommasi, Mariano
Journal Title
Journal ISSN
Volume Title
Publisher
Universidad de San Andrés. Departamento de Economía
Abstract
How do weather shocks affect labor market outcomes in Argentina? This study examines the effect of five types of weather shocks —droughts, heatwaves, cold waves, and intense and excessive rainfall— on labor market outcomes in Argentina from 2001 to 2010. In the context of increasing climate variability, this study is particularly relevant for economies like Argentina, which are highly dependent on agriculture and have significant segments of the population vulnerable to these shocks. The study presents a unique data set that merges 50 years of high-resolution climatic data with the 2000 and 2010 national censuses. Additionally, it includes imputed income data derived from the 2005 and 2010 Household Survey (EPH) using a survey-to-census methodology. By employing a differences-in-differences approach, the study examines the effects of drought, heatwaves, cold waves, and intense and excessive rainfall on employment status, labor force participation, and labor income. Results show that drought, heatwaves, and cold waves have significant negative effects on labor market outcomes. Importantly, these effects are disproportionally adverse for poorer income quintiles and less-educated individuals, potentially exacerbating existing social vulnerabilities. The study contributes to the climate-economy literature, particularly on labor markets, by extending beyond the usual single weather approach and, methodologically, utilizing a survey-to-census income imputation technique. The findings highlight the critical importance of quantifying weather impacts to inform the design of public policies for increased resilience to weather shocks in middle-income countries like Argentina.
Description
Fil: de Marcos, Inés. Universidad de San Andrés. Departamento de Economía; Argentina.