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Natural disasters and human capital accumulation

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Author Info
Cuaresma, Jesus Crespo

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Abstract

The author assesses empirically the relationship between natural disaster risk and investment in education. Although the results in the empirical literature tend to be inconclusive, using model averaging methods in the framework of cross-country and panel regressions, this paper finds an extremely robust negative partial correlation between secondary school enrollment and natural disaster risk. This result is exclusively driven by geological disasters. Natural disaster risk exposure is a robust determinant of differences in secondary school enrollment between countries, but not within countries, which implies that the effect can be interpreted as a long-run phenomenon.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4862.

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Date of creation: 01 Mar 2009
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Handle: RePEc:wbk:wbrwps:4862

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Related research
Keywords: Natural Disasters; Hazard Risk Management; Disaster Management; Population Policies; Access to Finance;

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  1. Winford H. Masanjala & Chris Papageorgiou, 2008. "Rough and lonely road to prosperity: a reexamination of the sources of growth in Africa using Bayesian model averaging," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(5), pages 671-682. [Downloadable!]
  2. Jesus Crespo Cuaresma & Gernot Doppelhofer & Martin Feldkircher, 2008. "The Determinants of Economic Growth in European Regions," Working Papers 2008-26, Faculty of Economics and Statistics, University of Innsbruck. [Downloadable!]
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  3. Noy, Ilan, 2009. "The macroeconomic consequences of disasters," Journal of Development Economics, Elsevier, vol. 88(2), pages 221-231, March. [Downloadable!] (restricted)
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  4. Stijns, Jean-Philippe, 2006. "Natural resource abundance and human capital accumulation," World Development, Elsevier, vol. 34(6), pages 1060-1083, June. [Downloadable!] (restricted)
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  5. Crespo Cuaresma & Hlouskova & Obersteiner, 2008. "Natural Disasters As Creative Destruction? Evidence From Developing Countries," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 214-226, 04. [Downloadable!] (restricted)
  6. Flug, Karnit & Spilimbergo, Antonio & Wachtenheim, Erik, 1998. "Investment in education: do economic volatility and credit constraints matter?," Journal of Development Economics, Elsevier, vol. 55(2), pages 465-481, April. [Downloadable!] (restricted)
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  7. Xavier Sala-I-Martin & Gernot Doppelhofer & Ronald I. Miller, 2004. "Determinants of Long-Term Growth: A Bayesian Averaging of Classical Estimates (BACE) Approach," American Economic Review, American Economic Association, vol. 94(4), pages 813-835, September. [Downloadable!]
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  8. Toya, Hideki & Skidmore, Mark, 2007. "Economic development and the impacts of natural disasters," Economics Letters, Elsevier, vol. 94(1), pages 20-25, January. [Downloadable!] (restricted)
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  9. Skidmore, Mark, 2001. "Risk, natural disasters, and household savings in a life cycle model," Japan and the World Economy, Elsevier, vol. 13(1), pages 15-34, January. [Downloadable!] (restricted)
  10. Checchi, Daniele & Garcia-Penalosa, Cecilia, 2004. "Risk and the distribution of human capital," Economics Letters, Elsevier, vol. 82(1), pages 53-61, January. [Downloadable!] (restricted)
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