No AccessPolicy Research Working Papers22 Jun 2013Adjusting the Labor Supply to Mitigate Violent Shocks: Evidence from Rural ColombiaAuthors/Editors: Manuel Fernández, Ana María Ibáñez, Ximena PeñaManuel Fernández, Ana María Ibáñez, Ximena Peñahttps://doi.org/10.1596/1813-9450-5684SectionsAboutPDF (1.1 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract:This paper studies the use of labor markets to mitigate the impact of violent shocks on households in rural areas in Colombia. It examines changes in the labor supply from on-farm to off-farm labor as a means of coping with the violent shock and the ensuing redistribution of time within households. It identifies the heterogeneous response by gender. Because the incidence of violent shocks is not exogenous, the analysis uses instrumental variables that capture several dimensions of the cost of exercising terror. As a response to the violent shocks, households decrease the time spent on on-farm work and increase their supply of labor to off-farm activities (non-agricultural ones). Men carry the bulk of the adjustment in the use of time inasmuch as they supply the most hours to off-farm non-agricultural work and formal labor markets. Labor markets do not fully absorb the additional labor supply. Women in particular are unable to find jobs in formal labor markets and men have increased time dedicated to leisure and household chores. Additional off-farm supply does not fully cover the decrease in consumption. The results suggest that in rural Colombia, labor markets are a limited alternative for coping with violent shocks. Thus, policies in conflict-affected countries should go beyond short-term relief and aim at preventing labor markets from collapsing and at supporting the recovery of agricultural production. Previous bookNext book FiguresReferencesRecommendedDetailsCited ByLessons from long-run (1975–2017) structural change in Colombia's coffee productionAgricultural and Resource Economics Review, Vol.1031 March 2021Should monetary policy lean against the wind in a small-open economy? Revisiting the Tinbergen ruleLatin American Journal of Central Banking, Vol.2, No.1Consequences of Violence Against Social Leaders In ColombiaSSRN Electronic Journal, Vol.55Revista Desarrollo y Sociedad, No.80The Cost of Fear: The Welfare Effect of the Risk of Violence in Northern UgandaWorld Bank Economic Review, Vol.31, No.327 November 2017Crime and Persistent Punishment: A Long-Run Perspective on the Links between Violence and Chronic Poverty in Mexico18 July 2016Nowcasting Czech GDP in real timeEconomic Modelling, Vol.54Exploring the Impact of Conflict Exposure during Formative Years on Labour Market Outcomes in TajikistanThe Journal of Development Studies, Vol.51, No.410 April 2015Input-trade liberalization, export prices and quality upgradingJournal of International Economics, Vol.95, No.2Homicide and Work: The Impact of Mexico's Drug War on Labor Market ParticipationSSRN Electronic JournalAbandoning Coffee Under the Threat of Violence and the Presence of Illicit Crops: Evidence from ColombiaSSRN Electronic JournalRevenue and Expenditure Nexus: A Case Study of ECOWASEconomics: The Open-Access, Open-Assessment E-Journal, Vol.7, No.2013-131 January 2013Remittances and labor supply in post-conflict TajikistanIZA Journal of Labor & Development, Vol.1, No.131 December 2012 View Published: June 2011 Copyright & Permissions Related RegionsLatin America & CaribbeanRelated CountriesColombiaRelated TopicsMacroeconomics and Economic GrowthGenderPoverty Reduction KeywordsCONFLICTLABOR MARKETSDEVELOPING ECONOMIESINSTRUMENTAL VARIABLES PDF DownloadLoading ...