PT  - JOURNAL ARTICLE
AU  - Belasen, Ariel R.
AU  - Polachek, Solomon W.
TI  - How Disasters Affect Local Labor Markets
AID  - 10.3368/jhr.44.1.251
DP  - 2009 Jan 01
TA  - Journal of Human Resources
PG  - 251--276
VI  - 44
IP  - 1
4099  - http://jhr.uwpress.org/content/44/1/251.short
4100  - http://jhr.uwpress.org/content/44/1/251.full
SO  - J Hum Resour2009 Jan 01; 44
AB  - 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.