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The Effect of Hurricane Katrina on the Labor Market Outcomes of Evacuees

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  • Jeffrey A. Groen

    ()
    (U.S. Bureau of Labor Statistics)

  • Anne E. Polivka

    ()
    (U.S. Bureau of Labor Statistics)

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    Abstract

    We use data from the Current Population Survey collected both before and after Hurricane Katrina to estimate the impact of Katrina on the labor market outcomes of evacuees. Our estimates are based on a difference-in-differences strategy that compares evacuees to all residents of Katrina-affected areas prior to Katrina, with a control group consisting of individuals who originally resided outside the areas affected by the storm. We estimate that Katrina had substantial effects on the labor market outcomes of evacuees over the 13-month period immediately following Katrina. However, our estimates suggest that the effects of Katrina diminished substantially over time as evacuees recovered from the hurricane and adjusted to new economic and social conditions. Evacuees who did not return to their pre-Katrina areas have fared much worse in the labor market than have those who returned. Differences in individual and family characteristics account for some of the differences in outcomes between returnees and non-returnees. We present evidence that non-returnees have fared much worse in the labor market primarily because they came from areas that experienced greater housing damage due to the storm and thus were more likely to have had their lives severely disrupted.

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    File URL: http://www.bls.gov/ore/pdf/ec080010.pdf
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    Bibliographic Info

    Paper provided by U.S. Bureau of Labor Statistics in its series Working Papers with number 415.

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    Length: 30 pages
    Date of creation: Mar 2008
    Date of revision:
    Handle: RePEc:bls:wpaper:ec080010

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    Related research

    Keywords: Hurricane Katrina; Job Displacement; Geographic Mobility; Employment;

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    References

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    1. Vigdor Jacob L, 2007. "The Katrina Effect: Was There a Bright Side to the Evacuation of Greater New Orleans?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-40, December.
    2. Alberto Abadie & Alexis Diamond & Jens Hainmueller, 2007. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California's Tobacco Control Program," NBER Technical Working Papers 0335, National Bureau of Economic Research, Inc.
    3. Lori G. Kletzer, 1998. "Job Displacement," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 115-136, Winter.
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    Cited by:
    1. Jacob Vigdor, 2008. "The Economic Aftermath of Hurricane Katrina," Journal of Economic Perspectives, American Economic Association, vol. 22(4), pages 135-54, Fall.
    2. Jeffrey A. Groen & Anne E. Polivka, 2009. "Going Home after Hurricane Katrina: Determinants of Return Migration and Changes in Affected Areas," Working Papers 428, U.S. Bureau of Labor Statistics.
    3. Brian Thiede & David Brown, 2013. "Hurricane Katrina: Who Stayed and Why?," Population Research and Policy Review, Springer, vol. 32(6), pages 803-824, December.
    4. Hartley, Daniel & Gallagher, Justin, 2014. "Household Finance after a Natural Disaster: The Case of Hurricane Katrina," Working Paper 1406, Federal Reserve Bank of Cleveland.

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