Climate variability, rainfall shocks, and farmers' income diversification in India

Rainfall in India has become much more variable as a result of global climate change. Responses to rain shocks vary depending on the level of climate variation a community experiences historically. Using data spanning three decades in 230 villages in India, I find that farmers tend to diversify their income with non-farm wage jobs in response to rainfall shocks. This diversification strategy is employed less in places with more variable historical weather as people are more adapted. As climate change causes more variable weather in the coming years, my results suggest that places with historically less variable weather may become more vulnerable in this changing climate. (C) 2018 Elsevier B.V. All rights reserved.