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How Disasters Affect Local Labor Markets: The Effects of Hurricanes in Florida

  • Ariel R. Belasen
  • Solomon W. Polachek

This study improves upon the Difference in Difference approach by examining exogenous shocks using a Generalized Difference in Difference (GDD) technique that identifies economic effects of hurricanes. Based on the Quarterly Census of Employment and Wages data, worker earnings in Florida counties hit by a hurricane increase up to 4 percent, whereas earnings in neighboring counties decrease. Over time, workers experience faster earnings and slower employment growth than workers in unaffected counties. Hurricanes have a greater impact in coastal and Panhandle counties, and powerful hurricanes have greater economic effects than weaker ones. Further, the GDD technique is applicable to analyze a wider range of exogenous shocks than hurricanes.

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File URL: http://jhr.uwpress.org/cgi/reprint/44/1/251
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Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 44 (2009)
Issue (Month): 1 ()
Pages:

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Handle: RePEc:uwp:jhriss:v:44:y:2009:i1:p251-276
Contact details of provider: Web page: http://jhr.uwpress.org/

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