IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v111y2018icp1-12.html
   My bibliography  Save this article

Natural disasters and human capital: The case of Nepal’s earthquake

Author

Listed:
  • Paudel, Jayash
  • Ryu, Hanbyul

Abstract

We exploit the quasi-random spatial and temporal nature of ground tremors to evaluate the long-term impact of the 1988 earthquake on educational outcomes among affected children of rural Nepal. We employ difference-in-differences research design to show that infants born in districts severely affected by the earthquake are 13.8% less likely to complete middle school and 10% less likely to complete high school. Our findings demonstrate that children belonging to high caste groups mitigate the negative environmental shock in the long run. However, infants belonging to low caste groups are 17.6% less likely to complete middle school and 11.9% less likely to complete high school. We also find that male infants exposed to a severe earthquake perform significantly better than their female counterparts, suggesting prospects of gender bias in a patriarchal society. Together, these results provide strong evidence that earthquakes lead to deterioration of human capital in a developing country setting.

Suggested Citation

  • Paudel, Jayash & Ryu, Hanbyul, 2018. "Natural disasters and human capital: The case of Nepal’s earthquake," World Development, Elsevier, vol. 111(C), pages 1-12.
  • Handle: RePEc:eee:wdevel:v:111:y:2018:i:c:p:1-12
    DOI: 10.1016/j.worlddev.2018.06.019
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X18302110
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.worlddev.2018.06.019?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Park, Albert & Wang, Sangui, 2017. "Benefiting From Disaster? Public and Private Responses to the Wenchuan Earthquake," World Development, Elsevier, vol. 94(C), pages 38-50.
    2. Hallegatte, Stéphane & Dumas, Patrice, 2009. "Can natural disasters have positive consequences? Investigating the role of embodied technical change," Ecological Economics, Elsevier, vol. 68(3), pages 777-786, January.
    3. James J. Heckman & Stefano Mosso, 2014. "The Economics of Human Development and Social Mobility," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 689-733, August.
    4. Janet Currie & Tom Vogl, 2013. "Early-Life Health and Adult Circumstance in Developing Countries," Annual Review of Economics, Annual Reviews, vol. 5(1), pages 1-36, May.
    5. Sharon Maccini & Dean Yang, 2009. "Under the Weather: Health, Schooling, and Economic Consequences of Early-Life Rainfall," American Economic Review, American Economic Association, vol. 99(3), pages 1006-1026, June.
    6. Neelsen, Sven & Stratmann, Thomas, 2011. "Effects of prenatal and early life malnutrition: Evidence from the Greek famine," Journal of Health Economics, Elsevier, vol. 30(3), pages 479-488, May.
    7. Douglas Almond & Lena Edlund & Mårten Palme, 2009. "Chernobyl's Subclinical Legacy: Prenatal Exposure to Radioactive Fallout and School Outcomes in Sweden," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1729-1772.
    8. Takasaki, Yoshito, 2017. "Do Natural Disasters Decrease the Gender Gap in Schooling?," World Development, Elsevier, vol. 94(C), pages 75-89.
    9. Caruso, Germán & Miller, Sebastian, 2015. "Long run effects and intergenerational transmission of natural disasters: A case study on the 1970 Ancash Earthquake," Journal of Development Economics, Elsevier, vol. 117(C), pages 134-150.
    10. Carter, Michael R. & Little, Peter D. & Mogues, Tewodaj & Negatu, Workneh, 2007. "Poverty Traps and Natural Disasters in Ethiopia and Honduras," World Development, Elsevier, vol. 35(5), pages 835-856, May.
    11. Valeria Groppo & Kati Kraehnert, 2017. "The impact of extreme weather events on education," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(2), pages 433-472, April.
    12. Andrea Ichino & Rudolf Winter-Ebmer, 2004. "The Long-Run Educational Cost of World War II," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 57-86, January.
    13. Ito, Takahiro, 2009. "Caste discrimination and transaction costs in the labor market: Evidence from rural North India," Journal of Development Economics, Elsevier, vol. 88(2), pages 292-300, March.
    14. Douglas Almond, 2006. "Is the 1918 Influenza Pandemic Over? Long-Term Effects of In Utero Influenza Exposure in the Post-1940 U.S. Population," Journal of Political Economy, University of Chicago Press, vol. 114(4), pages 672-712, August.
    15. Arindam Nandi & Sumit Mazumdar & Jere R. Behrman, 2018. "The effect of natural disaster on fertility, birth spacing, and child sex ratio: evidence from a major earthquake in India," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(1), pages 267-293, January.
    16. Eduardo Cavallo & Sebastian Galiani & Ilan Noy & Juan Pantano, 2013. "Catastrophic Natural Disasters and Economic Growth," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1549-1561, December.
    17. Albala-Bertrand, J. M., 1993. "Natural disaster situations and growth: A macroeconomic model for sudden disaster impacts," World Development, Elsevier, vol. 21(9), pages 1417-1434, September.
    18. William duPont IV & Ilan Noy, 2015. "What Happened to Kobe? A Reassessment of the Impact of the 1995 Earthquake in Japan," Economic Development and Cultural Change, University of Chicago Press, vol. 63(4), pages 777-812.
    19. Toya, Hideki & Skidmore, Mark, 2007. "Economic development and the impacts of natural disasters," Economics Letters, Elsevier, vol. 94(1), pages 20-25, January.
    20. Gianmarco León, 2012. "Civil Conflict and Human Capital Accumulation: The Long-term Effects of Political Violence in Perú," Journal of Human Resources, University of Wisconsin Press, vol. 47(4), pages 991-1022.
    21. Girard, Victoire, 2018. "Don’t Touch My Road. Evidence from India on Affirmative Action And Everyday Discrimination," World Development, Elsevier, vol. 103(C), pages 1-13.
    22. Sawada, Yasuyuki & Takasaki, Yoshito, 2017. "Natural Disaster, Poverty, and Development: An Introduction," World Development, Elsevier, vol. 94(C), pages 2-15.
    23. Ampaabeng, Samuel K. & Tan, Chih Ming, 2013. "The long-term cognitive consequences of early childhood malnutrition: The case of famine in Ghana," Journal of Health Economics, Elsevier, vol. 32(6), pages 1013-1027.
    24. Mark Skidmore & Hideki Toya, 2002. "Do Natural Disasters Promote Long-Run Growth?," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 664-687, October.
    25. repec:pri:rpdevs:currie_vogl_ar is not listed on IDEAS
    26. Jesús Crespo Cuaresma & Jaroslava Hlouskova & Michael Obersteiner, 2008. "Natural Disasters As Creative Destruction? Evidence From Developing Countries," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 214-226, April.
    27. Douglas Almond & Janet Currie, 2011. "Killing Me Softly: The Fetal Origins Hypothesis," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 153-172, Summer.
    28. Paudel, Jayash, 2018. "Community-Managed Forests, Household Fuelwood Use and Food Consumption," Ecological Economics, Elsevier, vol. 147(C), pages 62-73.
    29. Hiroshi Nakamura & Rinchindorj Dorjjadamba & Delgerjargal Sodnomdarjaa, 2017. "The Impact of a Disaster on Asset Dynamics in the Gobi Region of Mongolia: An Analysis of Livestock Changes," Journal of Development Studies, Taylor & Francis Journals, vol. 53(11), pages 1944-1961, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gignoux, Jérémie & Menéndez, Marta, 2016. "Benefit in the wake of disaster: Long-run effects of earthquakes on welfare in rural Indonesia," Journal of Development Economics, Elsevier, vol. 118(C), pages 26-44.
    2. Johanna Choumert-Nkolo & Anaïs Lamour & Pascale Phélinas, 2021. "The Economics of Volcanoes," Economics of Disasters and Climate Change, Springer, vol. 5(2), pages 277-299, July.
    3. Huang, Lulu & Liu, Qiannan & Tang, Yugang, 2024. "Long-term economic impact of disasters: Evidence from multiple earthquakes in China," World Development, Elsevier, vol. 174(C).
    4. Matteo Coronese & Davide Luzzati, 2022. "Economic impacts of natural hazards and complexity science: a critical review," LEM Papers Series 2022/13, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    5. Heger, Martin Philipp & Neumayer, Eric, 2019. "The impact of the Indian Ocean tsunami on Aceh’s long-term economic growth," Journal of Development Economics, Elsevier, vol. 141(C).
    6. Eskander, Shaikh M.S.U. & Barbier, Edward B., 2022. "Long-term impacts of the 1970 cyclone in Bangladesh," World Development, Elsevier, vol. 152(C).
    7. Loayza, Norman V. & Olaberría, Eduardo & Rigolini, Jamele & Christiaensen, Luc, 2012. "Natural Disasters and Growth: Going Beyond the Averages," World Development, Elsevier, vol. 40(7), pages 1317-1336.
    8. Alexandru Bănică & Karima Kourtit & Peter Nijkamp, 2020. "Natural disasters as a development opportunity: a spatial economic resilience interpretation," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 40(2), pages 223-249, October.
    9. Markus Brueckner & Sudyumna Dahal & Haiyan Lin, 2024. "Natural Disasters and Human Development in Asia–Pacific: The Role of External Debt," JRFM, MDPI, vol. 17(6), pages 1-27, June.
    10. Achyuta Adhvaryu & James Fenske & Anant Nyshadham, 2019. "Early Life Circumstance and Adult Mental Health," Journal of Political Economy, University of Chicago Press, vol. 127(4), pages 1516-1549.
    11. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2013. "Natural Disasters and Plant Survival: The impact of the Kobe earthquake," Discussion papers 13063, Research Institute of Economy, Trade and Industry (RIETI).
    12. Felbermayr, Gabriel & Gröschl, Jasmin, 2014. "Naturally negative: The growth effects of natural disasters," Journal of Development Economics, Elsevier, vol. 111(C), pages 92-106.
    13. Ball, Alastair, 2014. "Air pollution, foetal mortality, and long-term health: Evidence from the Great London Smog," MPRA Paper 63229, University Library of Munich, Germany, revised 25 Mar 2015.
    14. Stephanie Lackner, 2018. "Earthquakes and Economic Growth," FIW Working Paper series 190, FIW.
    15. Liu, Xinyan & Xu, Yunjiao, 2021. "Unexpected opportunity for girls: Earthquake, disaster relief and female education in China's poor counties," China Economic Review, Elsevier, vol. 70(C).
    16. Lynham, John & Noy, Ilan & Page, Jonathan, 2017. "The 1960 Tsunami in Hawaii: Long-Term Consequences of a Coastal Disaster," World Development, Elsevier, vol. 94(C), pages 106-118.
    17. Naqvi, Asjad, 2017. "Deep Impact: Geo-Simulations as a Policy Toolkit for Natural Disasters," World Development, Elsevier, vol. 99(C), pages 395-418.
    18. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2015. "Natural Disasters, Industrial Clusters and Manufacturing Plant Survival," Discussion papers 15008, Research Institute of Economy, Trade and Industry (RIETI).
    19. Achyuta Adhvaryu & Teresa Molina & Anant Nyshadham & Jorge Tamayo, 2024. "Helping Children Catch Up: Early Life Shocks and the PROGRESA Experiment," The Economic Journal, Royal Economic Society, vol. 134(657), pages 1-22.
    20. Renjie Zhao & Shihu Zhong & Aiping He, 2018. "Disaster Impact, National Aid, and Economic Growth: Evidence from the 2008 Wenchuan Earthquake," Sustainability, MDPI, vol. 10(12), pages 1-22, November.

    More about this item

    Keywords

    Natural disasters; Earthquake; Education; Difference-in-differences; Nepal;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:111:y:2018:i:c:p:1-12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.