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The short-run, dynamic employment effects of natural disasters: New insights from Puerto Rico

Author

Listed:
  • Alessandro Barattieri

    (UQAM - Université du Québec à Montréal = University of Québec in Montréal)

  • Patrice Borda

    (CREDDI - Centre de Recherche en Economie et en Droit du Développement Insulaire [UR7_2] - UA - Université des Antilles)

  • Alberto Brugnoli

    (UniBg - Università degli Studi di Bergamo = University of Bergamo)

  • Martino Pelli

    (CIREQ - Centre interuniversitaire de recherche en économie quantitative, CIRANO - Centre interuniversitaire de recherche en analyse des organisations [Montréal, Canada] = Center for Interuniversity Research and Analysis on Organizations [Montréal, Canada], GREDI - Groupe de recherche en économie et développement international [Sherbrooke] - École de gestion de l'Université de Sherbrooke - UdeS - Université de Sherbrooke = University of Sherbrooke [Sherbrooke])

  • Jeanne Tschopp

    (UNIBE - Universität Bern = University of Bern = Université de Berne)

Abstract

We study the short-run, dynamic employment effects of natural disasters. We exploit monthly data for 70 3- digits NAICS industries and 78 Puerto Rican counties over the period 1995–2019. Our exogenous measure of exposure to natural disasters is computed using the maximum wind speed recorded in each county during each hurricane. Using panel local projections, we find that after the ‘‘average'' hurricane, employment falls by 0.5% on average. Across industries, we find substantial heterogeneity in the employment responses. Employment increases in some industries while in others employment decreases after a hurricane. This heterogeneity can be partly explained by input–output linkages.

Suggested Citation

  • Alessandro Barattieri & Patrice Borda & Alberto Brugnoli & Martino Pelli & Jeanne Tschopp, 2023. "The short-run, dynamic employment effects of natural disasters: New insights from Puerto Rico," Post-Print hal-03926031, HAL.
    • Handle: RePEc:hal:journl:hal-03926031
    DOI: 10.1016/j.ecolecon.2022.107693
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    Citations

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    Cited by:

    1. Dong, Kangyin & Zhao, Congyu & Nepal, Rabindra & Zander, Kerstin K., 2025. "Are natural disasters stumbling blocks to carbon inequality mitigation? A global perspective," Ecological Economics, Elsevier, vol. 227(C).
    2. Rushaine Goulbourne & Amir B. Ferreira Neto & Amanda Ross, 2024. "Do businesses “vote with their feet” Too? Examining firm mobility in response to hurricane risk," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(3), pages 945-978, October.
    3. Andrea Bernini, 2024. "Labor market outcomes during opposite resource shocks: the 2009 and 2012 earthquakes in Italy," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 51(4), pages 1105-1130, November.
    4. Veronica Leoni & David Boto-García, 2023. "The Effect of Natural Disasters on Hotel Demand, Supply and Labour Markets: Evidence from the La Palma Volcano Eruption," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(4), pages 755-780, December.
    5. Pelli, Martino & Tschopp, Jeanne & Bernabé, Angélique & Diop, Boubacar, 2025. "Corrigendum to “Storms, early education and human capital” [J. Environ. Econ. Manag. 130 (2025) 103104]," Journal of Environmental Economics and Management, Elsevier, vol. 131(C).
    6. Bodenstein, Martin & Scaramucci, Mikaël, 2025. "On the GDP effects of severe physical hazards," European Economic Review, Elsevier, vol. 175(C).
    7. Nabil Daher, 2025. "Is growth at risk from natural disasters ? Evidence from quantile local projections," EconomiX Working Papers 2025-9, University of Paris Nanterre, EconomiX.
    8. Niu, Niu & Ma, Junhua & Zhang, Bin & Xu, Changqing & Wang, Zhaohua, 2024. "Ripple effects of coal phaseout on employment in China: From mining to coal consumption sectors," Resources Policy, Elsevier, vol. 97(C).
    9. Cardella, Eric & Keeler, Zachary & Ewing, Bradley T. & Liang, Daan, 2025. "Small business recovery and resilience in the aftermath of hurricane Harvey," Journal of Economic Behavior & Organization, Elsevier, vol. 234(C).

    More about this item

    Keywords

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    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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