Despite remarkable advances, overcoming rural poverty and food insecurity in developing countries remains one of the biggest challenges of the 21st century. Increasing production and income opportunities in the agricultural sector is one of the key factors to achieve these goals. While...

We study how rural households in Ethiopia adapt to droughts through labor reallocation. By using three waves of panel data and exploiting spatial-temporal variations in drought exposure, we find that households reduce on-farm work and increase off-farm self-employment in response to both...