This paper investigates labor allocation as a strategy for coping with unanticipated events. We evaluate household responses to unforeseen death and rainfall shocks in Zimbabwe, during a period in which many households were already stressed due to the country's long-term economic crisis. In this context, shocks compound existing stresses. Different types of shocks disparately affect household labor allocation. Household perceptions about the shocks experienced also shift labor use. Perceived rainfall shocks positively affect the share of labor allocated to migration-related activities and negatively affect the share of labor allocated to non-participation.
- Idiosyncratic and covariate shocks
- Labor allocation
ASJC Scopus subject areas
- Geography, Planning and Development
- Sociology and Political Science
- Economics and Econometrics