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

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  • Vigdor Jacob L

    () (Duke University)

Abstract

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 individuals destined to become evacuees observed prior to Katrina. Evacuee outcomes are not demonstrably better in destination communities with lower initial unemployment or higher 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.

Suggested Citation

  • 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.
  • Handle: RePEc:bpj:bejeap:v:7:y:2007:i:1:n:64
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    References listed on IDEAS

    as
    1. 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.
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    Citations

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    Cited by:

    1. Thomas K. Bauer & Sebastian Braun & Michael Kvasnicka, 2013. "The Economic Integration of Forced Migrants: Evidence for Post‐War Germany," Economic Journal, Royal Economic Society, vol. 123, pages 998-1024, September.
    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. Giorgio Di Pietro & Toni Mora, 2015. "The effect of the L’Aquila earthquake on labour market outcomes," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 33(2), pages 239-255, April.
    4. Tatyana Deryugina & Laura Kawano & Steven Levitt, 2014. "The Economic Impact of Hurricane Katrina on its Victims: Evidence from Individual Tax Returns," NBER Working Papers 20713, National Bureau of Economic Research, Inc.
    5. Jacob Vigdor, 2008. "The Economic Aftermath of Hurricane Katrina," Journal of Economic Perspectives, American Economic Association, vol. 22(4), pages 135-154, Fall.
    6. Jeffrey A. Groen† & Mark J. Kutzbach & Anne E. Polivka‡, 2015. "Storms and Jobs: The Effect of Hurricanes on Individuals’ Employment and Earnings over the Long Term," Working Papers 15-21r, Center for Economic Studies, U.S. Census Bureau.
    7. Atila Abdulkadiroğlu & Joshua D. Angrist & Peter D. Hull & Parag A. Pathak, 2016. "Charters without Lotteries: Testing Takeovers in New Orleans and Boston," American Economic Review, American Economic Association, vol. 106(7), pages 1878-1920, July.
    8. repec:zbw:rwirep:0267 is not listed on IDEAS
    9. Sastry, Narayan & Gregory, Jesse, 2013. "The effect of Hurricane Katrina on the prevalence of health impairments and disability among adults in New Orleans: Differences by age, race, and sex," Social Science & Medicine, Elsevier, vol. 80(C), pages 121-129.
    10. Thomas K. Bauer & Sebastian Braun & Michael Kvasnicka, 2011. "The Economic Integration of Forced Migrants – Evidence for Post-War Germany," Ruhr Economic Papers 0267, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    11. Berlemann, Michael & Steinhardt, Max F. & Tutt, Jascha, 2015. "Do Natural Disasters Stimulate Individual Saving? Evidence from a Natural Experiment in a Highly Developed Country," IZA Discussion Papers 9026, Institute for the Study of Labor (IZA).
    12. Bleemer, Zachary & Van der Klaauw, Wilbert, 2017. "Disaster (over-)insurance: the long-term financial and socioeconomic consequences of Hurricane Katrina," Staff Reports 807, Federal Reserve Bank of New York.
    13. M. Rose Olfert & Mark D. Partridge, 2010. "Best Practices in Twenty-First-Century Rural Development and Policy," Growth and Change, Wiley Blackwell, vol. 41(2), pages 147-164.
    14. Kevin Luo & Tomoko Kinugasa, 2018. "Do natural disasters influence long-term saving?: Assessing the impact of the 2008 Sichuan earthquake on household saving rates using synthetic control," Discussion Papers 1804, Graduate School of Economics, Kobe University.
    15. 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.
    16. repec:cen:wpaper:15-21 is not listed on IDEAS

    More about this item

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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