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The Returns to Education in the Context of a Natural Disaster: Evidence from the 2010 Earthquake in Haiti

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  • Tillmann Heidelk

Abstract

This paper investigates the impact of the 2010 Haiti earthquake on individual monetary returns to education. The earthquake caused major destruction of human and physical capital. The exogenous shock gives rise to a natural experiment. The analysis applies a Mincerian equation in a difference-in-differences framework, employing individual-level repeated cross section data from before and after the earthquake. The returns decreased on average by 37%, especially in equipment-capital intensive industry. Higher educated individuals adjust into low-paying self-employment or agriculture. The returns are particularly shock-sensitive for urban residents, migrants, males, and people over age 25.

Suggested Citation

  • Tillmann Heidelk, 2019. "The Returns to Education in the Context of a Natural Disaster: Evidence from the 2010 Earthquake in Haiti," Working Papers ECARES 2019-17, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:eca:wpaper:2013/288669
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    References listed on IDEAS

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    Keywords

    Returns to education; Earthquake; Natural disaster; Natural experiment; Haiti; Difference-in-differences; Difference-in-differences-in-differences;

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