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Employment Dynamics and the Nashville Tornado

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  • Ewing, Bradley T.
  • Kruse, Jamie Brown
  • Thompson, Mark A.

Abstract

This study examines changes in Nashville’s labor market following the April 16, 1998 tornado. Specifically, the study focuses on whether or not employment growth experienced a change in mean around the time of the tornado. A time series intervention model that allows for timevarying variance is used to examine the labor market dynamics associated with the impact of the tornado and the ensuing recovery process. The analysis of employment growth is conducted at the aggregate (overall) level as well as for seven industrial sectors. The empirical findings may be summarized as follows. The aggregate Nashville labor market, along with manufacturing, service, transportation and public utilities, and wholesale, retail trade sectors, experienced a more stable employment growth rate in the post-tornado period. Employment in the construction and mining and government sectors exhibited no evidence of change between the pre- and post-tornado periods. Employment growth in the finance, insurance, and real estate sector was lower in the posttornado period than in the pre-tornado period, while employment growth in the transportation and public utilities sector significantly increased in the period following the tornado.

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File URL: http://purl.umn.edu/132291
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Bibliographic Info

Article provided by Mid-Continent Regional Science Association in its journal Journal of Regional Analysis and Policy.

Volume (Year): 34 (2004)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:ags:jrapmc:132291

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Keywords: Labor and Human Capital;

References

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  1. Lastrapes, William D, 1989. "Exchange Rate Volatility and U.S. Monetary Policy: An ARCH Application," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 21(1), pages 66-77, February.
  2. Engle, Robert F, 1982. "Autoregressive Conditional Heteroscedasticity with Estimates of the Variance of United Kingdom Inflation," Econometrica, Econometric Society, vol. 50(4), pages 987-1007, July.
  3. James Payne & Bradley Ewing & Erik George, 1999. "Time series dynamics of US State unemployment rates," Applied Economics, Taylor & Francis Journals, vol. 31(11), pages 1503-1510.
  4. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-72, June.
  5. Clark, Todd E, 1998. "Employment Fluctuations in U.S. Regions and Industries: The Roles of National, Region-Specific, and Industry-Specific Shocks," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 202-29, January.
  6. Mark Skidmore & Hideki Toya, 2002. "Do Natural Disasters Promote Long-Run Growth?," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 664-687, October.
  7. Bradley T. Ewing & Jamie Brown Kruse, 2002. "The Impact of Project Impact on the Wilmington, North Carolina, Labor Market," Public Finance Review, , vol. 30(4), pages 296-309, July.
  8. Caballero, Ricardo J & Engel, Eduardo M R A & Haltiwanger, John, 1997. "Aggregate Employment Dynamics: Building from Microeconomic Evidence," American Economic Review, American Economic Association, vol. 87(1), pages 115-37, March.
  9. Paulo Guimaraes & Frank L. Hefner & Douglas P. Woodward, 1993. "Wealth And Income Effects Of Natural Disasters: An Econometric Analysis Of Hurricane Hugo," The Review of Regional Studies, Southern Regional Science Association, vol. 23(2), pages 97-114, Fall.
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Cited by:
  1. Bradley Ewing & Jamie Kruse & Mark Thompson, 2009. "Twister! Employment responses to the 3 May 1999 Oklahoma City tornado," Applied Economics, Taylor & Francis Journals, vol. 41(6), pages 691-702.
  2. Bradley T. Ewing & Jamie B. Kruse & Mark A. Thompson, 2010. "Measuring the Regional Economic Response to Hurricane Katrina," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 11(2), pages 80-85, 07.

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