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Fires and Local Labor Markets

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  • Raphaelle G. Coulombe
  • Akhil Rao

Abstract

We study the dynamic effects of fires on county labor markets in the US using a novel geophysical measure of fire exposure based on satellite imagery. We find increased fire exposure causes lower employment growth in the short and medium run, with medium-run effects being linked to migration. We also document heterogeneous effects across counties by education and industrial concentration levels, states of the business cycle, and fire size. By overcoming challenges in measuring fire impacts, we identify vulnerable places and economic states, offering guidance on tailoring relief efforts and contributing to a broader understanding of natural disasters' economic impacts.

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  • Raphaelle G. Coulombe & Akhil Rao, 2023. "Fires and Local Labor Markets," Papers 2308.02739, arXiv.org.
    • Handle: RePEc:arx:papers:2308.02739
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    1. Canavire-Bacarreza, Gustavo & Puerta-Cuartas, Alejandro & Ramos, Andrey, 2025. "On the effects of wildfires on poverty in Bolivia," Journal of Development Economics, Elsevier, vol. 175(C).

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    More about this item

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid

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