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Natural Disasters and Labor Market Outcomes in Mexico

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  • Acevedo, Ivonne
  • Castellani, Francesca
  • Lopez de la Cerda, Carlos
  • Lotti, Giulia
  • Székely, Miguel

Abstract

This study examines the relationship between climate change-induced weather emergencies and labor market outcomes in Mexico from 2016 to 2020. Using panel data and a two-way fixed effects estimation, the analysis focuses on storms, floods, wildfires, and landslides. The results show that storms can have significant negative associations with labor market outcomes. When living in municipalities affected by storms individuals experience 3.5% lower wages. Also, storms are associated to a decrease in weekly working hours, while the rest of weather-related emergencies do not show significant effects. Furthermore, the probability of employment is negatively and significantly affected by storms, resulting in a 1 percentage point reduction in the likelihood of being employed.

Suggested Citation

  • Acevedo, Ivonne & Castellani, Francesca & Lopez de la Cerda, Carlos & Lotti, Giulia & Székely, Miguel, 2023. "Natural Disasters and Labor Market Outcomes in Mexico," IDB Publications (Working Papers) 13131, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:13131
    DOI: http://dx.doi.org/10.18235/0005187
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    References listed on IDEAS

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    More about this item

    Keywords

    climate change; Weather emergencies; Labor Market Outcomes; Mexico; Storms; floods;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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