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Job growth and loss across sectors and time in the western US: The impact of large wildfires

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  • Nielsen-Pincus, Max
  • Moseley, Cassandra
  • Gebert, Krista

Abstract

The link between economic growth and natural hazards has long been studied to better understand the effects of natural hazards on local, regional, and country level growth patterns. However, relatively little generalizable research has focused on wildfires, one of the most common forest disturbances in the western United States (US). We examined the effect of large wildfires on employment growth across sectors and time in the western US. We matched wildfire occurrences from 2004 to 2008 and their duration with monthly employment data to identify the effect of wildfire on employment growth. Wildfires generally tended to exhibit positive effects on employment during the periods that suppression efforts were active. However, the overall positive effect masks winners and losers across sectors — such as natural resources and mining and leisure and hospitality, respectively. The overall positive effect then transitioned to a negative drag on local employment growth for a period of up to two years following the wildfire. We explore reasons why some sectors win while others lose and explanations for the lingering effects of a large wildfire on the economy as a whole.

Suggested Citation

  • Nielsen-Pincus, Max & Moseley, Cassandra & Gebert, Krista, 2014. "Job growth and loss across sectors and time in the western US: The impact of large wildfires," Forest Policy and Economics, Elsevier, vol. 38(C), pages 199-206.
    • Handle: RePEc:eee:forpol:v:38:y:2014:i:c:p:199-206
    DOI: 10.1016/j.forpol.2013.08.010
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    References listed on IDEAS

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    Cited by:

    1. Fotini Economou & Prodromos Prodromidis & Georgia Skintzi, 2019. "Large Fire Disaster and the Regional Economy: The 2007 Case of the Peloponnese," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 17(1), pages 7-31.
    2. Meier, Sarah & Elliott, Robert J.R. & Strobl, Eric, 2023. "The regional economic impact of wildfires: Evidence from Southern Europe," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    3. Annie Rosenthal & Eric Stover & Rohini J Haar, 2021. "Health and social impacts of California wildfires and the deficiencies in current recovery resources: An exploratory qualitative study of systems-level issues," PLOS ONE, Public Library of Science, vol. 16(3), pages 1-21, March.
    4. Walls, Margaret A. & Wibbenmeyer, Matthew, 2023. "How Local are the Local Economic Impacts of Wildfires?," RFF Working Paper Series 23-03, Resources for the Future.
    5. Apurba Roy & Ilan Noy, 2023. "Impact of extratropical cyclones, floods, and wildfires on firms’ financial performance in New Zealand," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 25(4), pages 493-574, October.
    6. Sultana Zeenat Fouzia & Jianhong Mu & Yong Chen, 2020. "Local labour market impacts of climate-related disasters: a demand-and-supply analysis," Spatial Economic Analysis, Taylor & Francis Journals, vol. 15(3), pages 336-352, July.
    7. Pugliese, Andrew & McCann, Laura & Artz, Georgeanne, 2015. "Impacts of national forests in the West on county population and employment," Forest Policy and Economics, Elsevier, vol. 50(C), pages 62-69.
    8. Jianhong E. Mu & Yong Chen, 2016. "Impacts of large natural disasters on regional income," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 83(3), pages 1485-1503, September.
    9. Benjamin A. Jones & Shana McDermott, 2021. "The Local Labor Market Impacts of US Megafires," Sustainability, MDPI, vol. 13(16), pages 1-15, August.
    10. Josiah Hickson & Joseph Marshan, 2022. "Labour Market Effects of Bushfires and Floods in Australia: A Gendered Perspective," The Economic Record, The Economic Society of Australia, vol. 98(S1), pages 1-23, September.

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