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

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 hi...

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Bibliographic Details
Published in:The Journal of human resources 2009-01, Vol.44 (1), p.251-276
Main Authors: Belasen, Ariel R., Polachek, Solomon W.
Format: Article
Language:English
Subjects:
Atmospherics
Business studies
Census Figures
Coefficients
Counties
County employees
Cyclones
Economic Factors
Economic growth
Economic impact
Employment
Enrollment
Florida
Human resources
Hurricanes
Impact analysis
Labor Market
Labor markets
Labor supply
Labour market
Natural Disasters
Regression coefficients
Studies
U.S.A
Wages
Wages & salaries
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Summary: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.
ISSN:0022-166X
1548-8004
1548-8004
DOI:10.1353/jhr.2009.0014