Abstract

AbstractHow does income uncertainty affect individual well‐being? Combining individual‐level panel data from rural Ethiopia with high‐resolution meteorological data, we estimate that mean‐preserving increases in rainfall variability are associated with reductions in objective consumption and subjective well‐being. Mediation analysis suggests that the estimated reduction in consumption does not fully explain the total effect on individual well‐being. Increased rainfall variability also has a large direct effect on individual well‐being.

Interactions among peers of the same social network play significant roles in facilitating the adoption and diffusion of modern technologies in poor communities. We conduct a large-scale randomized controlled trial in rural India to identify the impact of information from friends on willingness to pay (WTP) for high-quality and multipurpose solar lanterns.

We use a field experiment to identify how differences in preferences and spousal influence result in low willingness to pay (WTP) for technologies that can benefit all household members. We create income-earning opportunities to empower households and conduct an actual stove purchase experiment to elicit their WTP for fuel, time, and indoor air pollution-reducing improved cookstoves. The decision to buy the stove was randomly assigned to either wives, husbands, or couples using either individually or jointly earned income.

From a theoretical perspective, the effect that remittances have on the labour decisions of those that receive them is ambiguous; the empirical evidence reported in the literature is mixed and shows, unsurprisingly, that the net effect of remittances on labour supply is context-dependent. We contribute to this literature by using a detailed data set for rural Mexico that allows us to understand how remittances reshape rural livelihoods by modifying labour allocation decisions. Following previous evidence, we analyse female and male responses separately.

While much attention has been given to the effects of migration and remittances on agricultural activities in the communities of origin, the relationship between remittances and rural households' use of natural resources remains understudied. This paper contributes in filling this gap by using a Mexican data set that contains detailed information on both remittances and use of natural resources at the household level.