TY - JOUR T1 - How Disasters Affect Local Labor Markets JF - Journal of Human Resources JO - J Hum Resour SP - 251 LP - 276 DO - 10.3368/jhr.44.1.251 VL - 44 IS - 1 AU - Ariel R. Belasen AU - Solomon W. Polachek Y1 - 2009/01/01 UR - http://jhr.uwpress.org/content/44/1/251.abstract N2 - 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. ER -