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Do Natural Disasters Affect Human Capital? An Assessment Based on Existing Empirical Evidence

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Author Info

  • Baez, Javier E.

    ()
    (World Bank)

  • de la Fuente, Alejandro

    ()
    (World Bank)

  • Santos, Indhira

    ()
    (World Bank)

Abstract

The last few years have seen a notable increase in the number of studies investigating the causes and effects of natural disasters in many dimensions. This paper seeks to review and assess available empirical evidence on the ex-post microeconomic effects of natural disasters on the accumulation of human capital, focusing on consumption, nutrition, education and health, including mental health. Three major findings come forward from this work. First, disasters appear to bring substantial damages to human capital, including death and destruction, and produce deleterious consequences on nutrition, education, health and many income-generating processes. Furthermore, some of these detrimental effects are both large and long-lasting. Second, there is a large degree of heterogeneity in the size – but not much in the direction – of the impacts on different socioeconomic groups. Yet, an empirical regularity across natural hazards is that the poorest carry the heaviest burden of the effects of disasters across different determinants and outcomes of human capital. Finally, although the occurrence of natural hazards is mostly out of control of authorities, there still is a significant room for policy action to minimize their impacts on the accumulation of human capital. We highlight the importance of flexible safety nets as well as the double critical role of accurate and reliable information to monitor risks and vulnerabilities, and identify the impacts and responses of households once they are hit by a disaster. The paper also lays out existing knowledge gaps, particularly in regard to the need of improving our understanding of the impacts of disasters on health outcomes, the mechanisms of transmission and the persistence of the effects in the long-run.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5164.

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Length: 62 pages
Date of creation: Sep 2010
Date of revision:
Handle: RePEc:iza:izadps:dp5164

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Keywords: natural disasters; human capital accumulation;

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References

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  1. Sharon L. Maccini & Dean Yang, 2008. "Under the Weather: Health, Schooling, and Economic Consequences of Early-Life Rainfall," NBER Working Papers 14031, National Bureau of Economic Research, Inc.
  2. L. Cropper, Maureen & Sahin, Sebnem, 2009. "Valuing mortality and morbidity in the context of disaster risks," Policy Research Working Paper Series 4832, The World Bank.
  3. Takashi Yamano & Harold Alderman & Luc Christiaensen, 2003. "Child growth, shocks, and food aid in rural Ethiopia," Policy Research Working Paper Series 3128, The World Bank.
  4. de Mel, Suresh & McKenzie, David & Woodruff, Christopher, 2008. "Mental health recovery and economic recovery after the tsunami: High-frequency longitudinal evidence from Sri Lankan small business owners," Social Science & Medicine, Elsevier, vol. 66(3), pages 582-595, February.
  5. Valerie Mueller & Daniel Osgood, 2009. "Long-term Impacts of Droughts on Labour Markets in Developing Countries: Evidence from Brazil," Journal of Development Studies, Taylor & Francis Journals, vol. 45(10), pages 1651-1662.
  6. del Ninno, Carlo & Lundberg, Mattias, 2005. "Treading water: The long-term impact of the 1998 flood on nutrition in Bangladesh," Economics & Human Biology, Elsevier, vol. 3(1), pages 67-96, March.
  7. Valerie A. Mueller & Daniel E. Osgood, 2009. "Long-term consequences of short-term precipitation shocks: evidence from Brazilian migrant households," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 573-586, 09.
  8. Baez Javier Eduardo, 2006. "Income Volatility, Risk-Coping Behavior and Consumption Smoothing Mechanisms in Developing Countries: A Survey," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE.
  9. de Janvry, Alain & Finan, Frederico & Sadoulet, Elisabeth & Vakis, Renos, 2006. "Can conditional cash transfer programs serve as safety nets in keeping children at school and from working when exposed to shocks?," Journal of Development Economics, Elsevier, vol. 79(2), pages 349-373, April.
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Citations

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Cited by:
  1. Dang, Duc Anh, 2012. "On the sources of risk preferences in rural Vietnam," MPRA Paper 38738, University Library of Munich, Germany.
  2. Cesar Calvo & Stefan Dercon, 2013. "Vulnerability to individual and aggregate poverty," Social Choice and Welfare, Springer, vol. 41(4), pages 721-740, October.
  3. Wenzel, Lars & Wolf, André, 2013. "Protection against major catastrophes: An economic perspective," HWWI Research Papers 137, Hamburg Institute of International Economics (HWWI).
  4. Rentschler, Jun E., 2013. "Why resilience matters - the poverty impacts of disasters," Policy Research Working Paper Series 6699, The World Bank.
  5. Cameron, Lisa A. & Shah, Manisha, 2012. "Risk-Taking Behavior in the Wake of Natural Disasters," IZA Discussion Papers 6756, Institute for the Study of Labor (IZA).
  6. Thomas K.J. McDermott, 2011. "The Effects of Natural Disasters on Human Capital Accumulation," The Institute for International Integration Studies Discussion Paper Series iiisdp391, IIIS, revised Feb 2012.
  7. Anh Duc Dang, 2012. "On the Sources of Risk Preferences in Rural Vietnam," ANU Working Papers in Economics and Econometrics 2012-593, Australian National University, College of Business and Economics, School of Economics.
  8. Noy, Ilan & Karim, Azreen, 2013. "Poverty, inequality and natural disasters – A survey," Working Paper Series 2974, Victoria University of Wellington, School of Economics and Finance.
  9. de Vreyer, Philippe & Guilbert, Nathalie & Mesplé-Somps, Sandrine, 2012. "The 1987-1989 Locust Plague in Mali: Evidences of the Heterogeneous Impact of Income Shocks on Education Outcomes," Economics Papers from University Paris Dauphine 123456789/9787, Paris Dauphine University.
  10. Dang, Duc Anh, 2012. "On the sources of risk preferences in rural Vietnam," MPRA Paper 38058, University Library of Munich, Germany.
  11. Philippe De Vreyer & Nathalie Guilbert & Sandrine Mesplé-Somps, 2012. "The 1987-89 Locust Plague in Mali: Evidences of the Heterogeneous Impact of Income Shocks on Education Outcomes," Working Papers DT/2012/05, DIAL (Développement, Institutions et Mondialisation).
  12. Xu, Guo, 2011. "Long-run consequences of natural disasters: Evidence from Tangshan," Proceedings of the German Development Economics Conference, Berlin 2011 82, Verein für Socialpolitik, Research Committee Development Economics.
  13. Bustelo, Monserrat & Arends-Kuenning, Mary P. & Lucchetti, Leonardo, 2012. "Persistent Impact of Natural Disasters on Child Nutrition and Schooling: Evidence from the 1999 Colombian Earthquake," IZA Discussion Papers 6354, Institute for the Study of Labor (IZA).

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