RT Journal Article
SR Electronic
T1 How Disasters Affect Local Labor Markets
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 251
OP 276
DO 10.3368/jhr.44.1.251
VO 44
IS 1
A1 Ariel R. Belasen
A1 Solomon W. Polachek
YR 2009
UL http://jhr.uwpress.org/content/44/1/251.abstract
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.