Can farmers weather climate change?


Published 21.03.18

Jonathan Colmer explores the effect increasing temperatures have on farmers and the occupational structure in India.

Jonathan Colmer finds that increases in temperature are associated with a reduction in agricultural production, average wages, and the share of workers engaged in agriculture. However, these changes are accompanied by an increase in workers in the manufacturing sectors, which sees a corresponding increase in manufacturing output. Hence, flexible labour markets and an expanding manufacturing sector can offset the economic losses due to weather-driven changes in the agricultural sector.