Short and long-term effects of the 1998 Bangladesh flood on rural wages

Natural disasters have particularly devastating impacts on economic growth in developing countries because they impede the accumulation of capital. The resilience of labor markets is crucial especially for the poor who rely only on labor to diversify their income portfolio and buffer against risk. S...

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Autores principales: Mueller, Valerie, Quisumbing, Agnes R.
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2010
Materias:
Acceso en línea:https://hdl.handle.net/10568/154915
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author Mueller, Valerie
Quisumbing, Agnes R.
author_browse Mueller, Valerie
Quisumbing, Agnes R.
author_facet Mueller, Valerie
Quisumbing, Agnes R.
author_sort Mueller, Valerie
collection Repository of Agricultural Research Outputs (CGSpace)
description Natural disasters have particularly devastating impacts on economic growth in developing countries because they impede the accumulation of capital. The resilience of labor markets is crucial especially for the poor who rely only on labor to diversify their income portfolio and buffer against risk. Such a risk management strategy may become more challenging as global climate change increases the frequency of natural disasters. We use the Bangladesh Flood Impact panel household survey to evaluate how the 1998 “flood of the century” affected wages in Bangladesh. We find long-term declines in wages where nonagricultural labor markets are more severely affected. We also evaluate how soil quality and proximity to auxiliary labor markets cushion labor markets against the disaster. The most compelling evidence shows that workers in areas further from centers of economic activity are more vulnerable to flood-induced wage losses. Our findings suggest that future emergency relief and climate change programs should consider the protection of labor markets by improving infrastructure to facilitate job searches in alternative locations or reduce migration costs.
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spelling CGSpace1549152025-11-06T05:28:13Z Short and long-term effects of the 1998 Bangladesh flood on rural wages Mueller, Valerie Quisumbing, Agnes R. disasters flooding remuneration economic growth risk management labour market migration climate change soil quality Natural disasters have particularly devastating impacts on economic growth in developing countries because they impede the accumulation of capital. The resilience of labor markets is crucial especially for the poor who rely only on labor to diversify their income portfolio and buffer against risk. Such a risk management strategy may become more challenging as global climate change increases the frequency of natural disasters. We use the Bangladesh Flood Impact panel household survey to evaluate how the 1998 “flood of the century” affected wages in Bangladesh. We find long-term declines in wages where nonagricultural labor markets are more severely affected. We also evaluate how soil quality and proximity to auxiliary labor markets cushion labor markets against the disaster. The most compelling evidence shows that workers in areas further from centers of economic activity are more vulnerable to flood-induced wage losses. Our findings suggest that future emergency relief and climate change programs should consider the protection of labor markets by improving infrastructure to facilitate job searches in alternative locations or reduce migration costs. 2010 2024-10-01T14:04:46Z 2024-10-01T14:04:46Z Working Paper https://hdl.handle.net/10568/154915 en Open Access application/pdf International Food Policy Research Institute Mueller, Valerie; Quisumbing, Agnes R. 2010. Short and long-term effects of the 1998 Bangladesh flood on rural wages. IFPRI Discussion Paper 956. https://hdl.handle.net/10568/154915
spellingShingle disasters
flooding
remuneration
economic growth
risk management
labour market
migration
climate change
soil quality
Mueller, Valerie
Quisumbing, Agnes R.
Short and long-term effects of the 1998 Bangladesh flood on rural wages
title Short and long-term effects of the 1998 Bangladesh flood on rural wages
title_full Short and long-term effects of the 1998 Bangladesh flood on rural wages
title_fullStr Short and long-term effects of the 1998 Bangladesh flood on rural wages
title_full_unstemmed Short and long-term effects of the 1998 Bangladesh flood on rural wages
title_short Short and long-term effects of the 1998 Bangladesh flood on rural wages
title_sort short and long term effects of the 1998 bangladesh flood on rural wages
topic disasters
flooding
remuneration
economic growth
risk management
labour market
migration
climate change
soil quality
url https://hdl.handle.net/10568/154915
work_keys_str_mv AT muellervalerie shortandlongtermeffectsofthe1998bangladeshfloodonruralwages
AT quisumbingagnesr shortandlongtermeffectsofthe1998bangladeshfloodonruralwages