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How Disasters Affect Local Labor Markets: The Effects of Hurricanes in Florida

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  • Ariel R. Belasen
  • Solomon W. Polachek

Abstract

This study improves upon the Difference in Difference approach by examining exogenous shocks using a Generalized Difference in Difference (GDD) technique that identifies economic effects of hurricanes. Based on the Quarterly Census of Employment and Wages data, worker earnings in Florida counties hit by a hurricane increase up to 4 percent, whereas earnings in neighboring counties decrease. Over time, workers experience faster earnings and slower employment growth than workers in unaffected counties. Hurricanes have a greater impact in coastal and Panhandle counties, and powerful hurricanes have greater economic effects than weaker ones. Further, the GDD technique is applicable to analyze a wider range of exogenous shocks than hurricanes.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 44 (2009)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:uwp:jhriss:v:44:y:2009:i1:p251-276

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Web page: http://jhr.uwpress.org/

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Cited by:
  1. 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.
  2. Richard Evans & Yingyao Hu & Zhong Zhao, 2010. "The fertility effect of catastrophe: U.S. hurricane births," Journal of Population Economics, Springer, vol. 23(1), pages 1-36, January.
  3. Eric Strobl, 2011. "The Economic Growth Impact of Hurricanes: Evidence from U.S. Coastal Counties," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 575-589, May.
  4. Strobl, Eric & Walsh, Frank, 2008. "The Re-Building Effect of Hurricanes: Evidence from Employment in the US Construction Industry," IZA Discussion Papers 3544, Institute for the Study of Labor (IZA).
  5. Marchand, Joseph, 2010. "Local Labor Market Impacts of Energy Boom-Bust-Boom in Western Canada," Working Papers 2010-17, University of Alberta, Department of Economics, revised 01 Mar 2011.
  6. Yoshito Takasaki, 2013. "Do natural disasters beget fraud victimization?: Unrealized coping through labor migration among the poor," Tsukuba Economics Working Papers 2013-002, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.
  7. Belasen, Ariel R. & Polachek, Solomon, 2008. "How Hurricanes Affect Employment and Wages in Local Labor Markets," IZA Discussion Papers 3407, Institute for the Study of Labor (IZA).
  8. Emek Basker & Javier Miranda, 2014. "Taken by Storm: Business Survival in the Aftermath of Hurricane Katrina," Working Papers 1406, Department of Economics, University of Missouri.
  9. Martina Kirchberger, 2014. "Natural disasters and labour markets," CSAE Working Paper Series 2014-19, Centre for the Study of African Economies, University of Oxford.

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