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Consumption Risk, Labor Supply and Human Capital Accumulation in India
September 9, 2015Poverty and Applied Microeconomics Seminar Series

Speaker: Esther Gehrke is a researcher at the German Development Institute. More »

Abstract: In this paper, we analyze the effect of consumption risk on households' labor supply, time allocated to home production and schooling over different periods of the agricultural cycle. We show theoretically and empirically that uncertainty regarding future consumption increases current labor supply of women at the intensive margin and reduces the time working women allocate to household chores. We further show that this leads to a reduction in time children in those households spend on school activities (both in school and studying at home) because they have to perform part of the home production. We argue that an income smoothing policy (such as the Indian Employment Guarantee) could reduce labor supply of women at the intensive margin allowing children to spend more time in school and reducing periodic school dropouts.

Download Paper (Copies available at the seminar)

Last Updated: Sep 02, 2015

The Poverty and Applied Micro Seminar Series is a weekly series hosted by the World Bank's research department. The series invites leading researchers in applied microeconomics from the fields of poverty, human development and public service delivery, agriculture and rural development, political economy, behavioral economics, private sector development, and a range of other fields to present the results of their most recent research in a seminar format. The full list of seminars can be viewed here.

Event Details
  • Date: September 9, 2015
  • Location: MC3-570
  • Time: 12:30 - 2:00 PM
  • CONTACT: Anna Bonfield
  • abonfield@worldbank.org



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