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

• Autores: Ariel R. Belasen, Solomon W. Polachek
• Localización: Journal of human resources, ISSN 0022-166X, Vol. 44, Nº 1, 2009, págs. 251-276
• Idioma: inglés
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• Resumen

  • 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.