The Effects of Climate Change on Labor and Capital Reallocation

Long-term Effects of Weather-induced Migration on Urban Labor and Housing Markets

“…3 This measure depends on various atmospheric factors, especially temperature. It is a better predictor of droughts than measures based only on precipitation data such as the Standardized Precipitation Index, and it has been used in prior studies of weather-induced migration (for example, Kubik and Maurel 2016;Albert et al 2021). To simplify the discussion of our results, all numbers are reversed (multiplied by −1) so that we can interpret the index as a measure of dryness.…”

“…To identify the causal effects of weather-induced migration to cities, we follow a recent literature (for example, Kleemans and Magruder 2018;Albert et al 2021;Corbi et al 2021;Ibañez et al 2022) in constructing a city-level instrument using weather variation in rural municipalities of origin interacted with the shares of each rural municipality of origin in the historical rural-urban migration to the city. We validate this approach first by showing that our measure of dryness predicts emigration rates in rural municipalities.…”

“…Our work is most closely related to two recent papers, both using weather variation to predict migration in the Brazilian context. Albert et al (2021) study the economic impact of extreme weather events on the economies of the affected areas and on the reallocation of both labor and capital across the national territory, including both urban and rural areas. Corbi et al (2021) study the effects of weather-induced migrants from the semi-arid region in Brazil on local labor markets in both rural and urban receiving communities.…”

Climate Change and Farmers’ Household Financial Vulnerability: Evidence From China

“…Based on obtained primary household data from Akwa Ibom State, Nigeria, Amos et al (2015) develop a livelihood vulnerability index (LVI) to assess vulnerability and find that households are vulnerable to climate change and that a shortage of adequate finance is the most important challenge. Albert et al (2021) point out that empirical evidence suggests that higher temperatures and extreme weather can have a negative impact on economic activity. According to Paavola (2008), climate change in Tanzania limits livelihood options for women, children, and those vulnerable groups without adequate access to employment and public services, increasing their insecurity and making their livelihood even worse.…”

Climate Change and Migration: The Case of Africa

“…11 A large body of reduced-form research assesses the causal relationship between past weather shocks and migration in rural economies (Baez et al, 2017;Gr öger and Zylberberg, 2016;Cai et al, 2016;Albert et al, 2021) and the resulting increasing urbanization (Barrios et al, 2006;Castells-Quintana et al, 2021;Henderson et al, 2017). Their results however cannot be extrapolated to the future and thus are not informative about potential future climate migration.…”