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The Katrina Effect: Was There a Bright Side to the Evacuation of Greater New Orleans?

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  • Jacob L. Vigdor

Abstract

In the presence of moving costs, individuals may remain in a region even when they expect to attain a higher standard of living elsewhere. When a natural disaster or other exogenous shock forces individuals to move, the net impact on living standards could be positive or negative. This paper uses longitudinal data from Current Population Surveys conducted between 2004 and 2006 to estimate the net impact of Hurricane Katrina-related evacuation on various indicators of well-being. While evacuees who have returned to the affected region show evidence of returning to normalcy in terms of labor supply and earnings, those who persisted in other locations exhibit large and persistent gaps, even relative to the poor outcomes of New Orleans-area residents prior to the storm. Evacuee outcomes show few if any relationships with host community characteristics, including unemployment and growth rates. The impact of evacuation on total income was blunted to some extent by government transfer payments and by self-employment activities. Overall, there is little evidence to support the notion that poor underemployed residents of the New Orleans area were disadvantaged by their location in a relatively depressed region.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13022.

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Date of creation: Apr 2007
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Handle: RePEc:nbr:nberwo:13022

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  1. Jeffrey R. Kling & Jeffrey Liebman & Lawrence F. Katz & Lisa Sanbonmatsu, 2004. "Moving To Opportunity And Tranquility: Neighborhood Effects On Adult Economic Self-Sufficiency And Health From A Randomized Housing Voucher Experiment," Working Papers 5, Princeton University, Department of Economics, Industrial Relations Section..
  2. Brian A. Jacob, 2004. "Public Housing, Housing Vouchers, and Student Achievement: Evidence from Public Housing Demolitions in Chicago," American Economic Review, American Economic Association, vol. 94(1), pages 233-258, March.
  3. Kling, Jeffrey & Liebman, Jeffrey, 2004. "Experimental Analysis of Neighborhood Effects on Youth," Working Paper Series rwp04-034, Harvard University, John F. Kennedy School of Government.
  4. Philip Oreopoulos, 2003. "The Long-Run Consequences Of Living In A Poor Neighborhood," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1533-1575, November.
  5. Edward L. Glaeser & Joseph Gyourko, . "Urban Decline and Durable Housing," Zell/Lurie Center Working Papers 382, Wharton School Samuel Zell and Robert Lurie Real Estate Center, University of Pennsylvania.
  6. Jeffrey R. Kling & Jeffrey B. Liebman & Lawrence F. Katz, 2005. "Experimental Analysis of Neighborhood Effects," NBER Working Papers 11577, National Bureau of Economic Research, Inc.
  7. Susan Clampet-Lundquist & J. Greg Duncan & Kathryn Edin & Jeffrey R. Kling & Kristin Turney, 2006. "Neighborhood Effects on Barriers to Employment: Results From a Randomized Housing Mobility Experiment in Baltimore," Working Papers 890, Princeton University, Department of Economics, Industrial Relations Section..
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Cited by:
  1. Bauer, Thomas K. & Braun, Sebastian & Kvasnicka, Michael, 2011. "The Economic Integration of Forced Migrants: Evidence for Post-War Germany," IZA Discussion Papers 5855, Institute for the Study of Labor (IZA).
  2. Bruce Sacerdote, 2008. "When The Saints Come Marching In: Effects of Hurricanes Katrina and Rita on Student Evacuees," NBER Working Papers 14385, National Bureau of Economic Research, Inc.
  3. Jacob Vigdor, 2008. "The Economic Aftermath of Hurricane Katrina," Journal of Economic Perspectives, American Economic Association, vol. 22(4), pages 135-54, Fall.
  4. Giorgio Di Pietro & Toni Mora, 2011. "The effect of the l’Aquila earthquake on labour market outcomes," Working Papers 2011/41, Institut d'Economia de Barcelona (IEB).
  5. Jeffrey A. Groen & Anne E. Polivka, 2008. "The Effect of Hurricane Katrina on the Labor Market Outcomes of Evacuees," Working Papers 415, U.S. Bureau of Labor Statistics.

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