Storms and Jobs: The Effect of Hurricanes on Individuals’ Employment and Earnings over the Long Term

Hurricanes Katrina and Rita devastated the US Gulf Coast in 2005. We use job-level data to compare the evolution of earnings for affected workers in four states with workers from matched control counties. We attribute short-term earnings losses to job separations and long-term gains to wage growth i...

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Bibliographic Details
Published in:Journal of labor economics 2020-07, Vol.38 (3), p.653-685
Main Authors: Groen, Jeffrey A., Kutzbach, Mark J., Polivka, Anne E.
Format: Article
Language:English
Subjects:
Earnings
Employment
Hurricanes
Labor demand
Labor economics
Labor market
Labor supply
Residence
Short term
Storms
Supply & demand
Wages & salaries
Workers
Workplaces
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Summary:Hurricanes Katrina and Rita devastated the US Gulf Coast in 2005. We use job-level data to compare the evolution of earnings for affected workers in four states with workers from matched control counties. We attribute short-term earnings losses to job separations and long-term gains to wage growth in the affected areas. Wages rose due to reduced labor supply and increased labor demand in the affected labor markets. Damage to a worker’s residence or workplace accentuated short-term earnings losses. Effects varied by prestorm industry, with larger gains for workers in sectors related to rebuilding.
ISSN:0734-306X
1537-5307
DOI:10.1086/706055