We study rural households' coping strategies to uninsured shocks in low-income countries and how these strategies relate to misallocation and structural transformation. Farmers increase their labor supply to non-farming enterprises (NFEs) and are more likely to migrate temporarily when they experience low rainfall. Since NFEs can work as an ex-post income smoothing mechanism, uninsured shocks can give rise to reluctant entrepreneurs. Persistence of reluctant entrepreneurship contributes to the skill composition across sectors and the overall structure of the village economy.

--

If there is an issue with the zoom, the seminar continues in the room without interruption.

https://stockholmuniversity.zoom.us/j/64587147371

Meeting ID: 645 8714 7371