This paper explores how people adapt to climate shocks, specifically coral bleaching, that have long-lasting impacts on income. Caused mainly by abnormally high sea surface temperature, coral bleaching has significant effects on marine resources. Using panel data from Indonesia and exogenous variations in bleaching, I observe that fishery households in affected areas experienced a decrease in income relative to other households. Although consumption expenditures did not decline significantly in response to these income shocks, these households reduced their protein consumption in the short and long runs. Regarding labor market outcomes, the affected households tended to substantially increase their labor supply and switch industries only in the long run.
1.Vidyasirimedhi Inst Sci & Technol, Rayong, Thailand 2.Coll William & Mary, Williamsburg, VA USA 3.Univ Washington, Seattle, WA 98195 USA
Recommended Citation:
Chaijaroen, Pasita. Long-lasting income shocks and adaptations: Evidence from coral bleaching in Indonesia[J]. JOURNAL OF DEVELOPMENT ECONOMICS,2019-01-01,136:119-136