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Regional labor markets after an earthquake. Short-term emergency reactions in a cross-country perspective. Cases from Chile, Ecuador, Italy
[Regionale Arbeitsmärkte nach einem Erdbeben. Kurzfristige Notfallreaktionen aus länderübergreifender Perspektive. Fälle aus Chile, Ecuador, Italien]

Author

Listed:
  • César Andrés Mendoza

    (Universidad de Cuenca
    Universidad Católica del Norte)

  • Giulio Breglia

    (Gran Sasso Science Institute
    University of Rome “Roma Tre”)

  • Benjamín Jara

    (Gran Sasso Science Institute)

Abstract

Disasters can generate different economic effects in the short run in local economies. Our goal is to reveal how natural disasters reshaped labor markets in three countries that faced massive earthquakes in the past decade: Italy (2009 L’Aquila earthquake), Chile (2010 Concepción earthquake-tsunami) and Ecuador (2016 earthquake in the coast of Manabí and Esmeraldas). These three countries present a mix of heterogeneity and homogeneity in observable characteristics of the individuals, socio-economic structure of the affected areas, institutional factors and macroeconomic characteristics, as well as the actions and budgets allocated by different governments for reconstruction and recovery in the affected areas. Using three short run labor surveys and different regression models (wage estimations and a double difference approach), we show an increase in labor income and worked hours (in average) in Ecuador for males and females, while in Italy we found an increase only in worked hours for females but not for males. In Chile no significant earthquake effects were found, neither in labor income, nor in worked hours. Our results suggest that the short run is critical to describe how regional labor markets will perform, differences and particularities of each country could be explained by institutional differences, economic trends, and how governments responded to their particular catastrophes.

Suggested Citation

  • César Andrés Mendoza & Giulio Breglia & Benjamín Jara, 2020. "Regional labor markets after an earthquake. Short-term emergency reactions in a cross-country perspective. Cases from Chile, Ecuador, Italy [Regionale Arbeitsmärkte nach einem Erdbeben. Kurzfristig," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 40(2), pages 189-221, October.
    • Handle: RePEc:spr:jahrfr:v:40:y:2020:i:2:d:10.1007_s10037-020-00144-5
    DOI: 10.1007/s10037-020-00144-5
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    More about this item

    Keywords

    Natural disasters; Labor markets; Cross-country perspective; Short-term effects;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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