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Storms and Jobs: The Effect of Hurricanes on Individuals’ Employment and Earnings over the Long Term

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  • Jeffrey A. Groen
  • Mark J. Kutzbach
  • Anne E. Polivka

Abstract

Hurricanes Katrina and Rita devastated the US Gulf Coast in 2005. We use job-level data to compare the evolution of earnings for affected workers in four states with workers from matched control counties. We attribute short-term earnings losses to job separations and long-term gains to wage growth in the affected areas. Wages rose due to reduced labor supply and increased labor demand in the affected labor markets. Damage to a worker’s residence or workplace accentuated short-term earnings losses. Effects varied by prestorm industry, with larger gains for workers in sectors related to rebuilding.

Suggested Citation

  • Jeffrey A. Groen & Mark J. Kutzbach & Anne E. Polivka, 2020. "Storms and Jobs: The Effect of Hurricanes on Individuals’ Employment and Earnings over the Long Term," Journal of Labor Economics, University of Chicago Press, vol. 38(3), pages 653-685.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/706055
    DOI: 10.1086/706055
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    More about this item

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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