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Research ArticleArticles

How Disasters Affect Local Labor Markets

The Effects of Hurricanes in Florida

Ariel R. Belasen and Solomon W. Polachek
Journal of Human Resources, January 2009, 44 (1) 251-276; DOI: https://doi.org/10.3368/jhr.44.1.251
Ariel R. Belasen
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Solomon W. Polachek
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Abstract

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.

  • Received July 2006.
  • Accepted September 2007.

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Journal of Human Resources
Vol. 44, Issue 1
1 Jan 2009
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How Disasters Affect Local Labor Markets
Ariel R. Belasen, Solomon W. Polachek
Journal of Human Resources Jan 2009, 44 (1) 251-276; DOI: 10.3368/jhr.44.1.251

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How Disasters Affect Local Labor Markets
Ariel R. Belasen, Solomon W. Polachek
Journal of Human Resources Jan 2009, 44 (1) 251-276; DOI: 10.3368/jhr.44.1.251
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