``Drought Shocks, Household Risk Sharing and Occupation Choices" Job Market Paper
``Does Drought Accelerate Structural Change in India?"
Droughts are becoming increasingly common in India. However, most agricultural land remains rainfall dependent. Agriculture employs 50% of India's workforce who remain vulnerable to rainfall fluctuations. This paper studies the adaptation to droughts of rural households dependent on agriculture. Using a difference-in-difference estimation strategy across drought and non-drought affected regions, I test the effect of drought on annual agricultural labor hours of rural households. Findings suggest that rural households experiencing drought reduce 4.1% of their fraction of agricultural hours. There is a compositional income shift: the fraction of agricultural income falls and the fraction of non-agricultural income rises with no significant impact on total household income. Results suggest that drought causes households to adapt by diversifying away from agriculture, thereby accelerating the structural change in India. Interestingly, however attachment to agriculture in the form of land ownership mitigates the role of drought on diversification away from agriculture. Cultural obligations and land market transaction costs influence occupational choices in rural India.
Work in Progress
``Airport Expansion, Air Pollution, and Death Count in Mexico City." with Luis A. Fernández Intriago