RT Journal Article SR Electronic T1 Economic Shocks and Labor Market Flexibility JF Journal of Human Resources JO J Hum Resour FD University of Wisconsin Press SP 171 OP 199 DO 10.3368/jhr.54.1.0616.8012R1 VO 54 IS 1 A1 Simon Franklin A1 Julien Labonne YR 2019 UL http://jhr.uwpress.org/content/54/1/171.abstract AB We test how labor markets adjust to large, but temporary, economic shocks in a context in which such shocks are common. Using an individual-level panel, from 1,140 Philippine municipalities over 26 quarters, we find that workers in areas affected by strong typhoons experience reductions in hours worked and hourly wages, without evidence of layoffs. The results are strongest for formal, wage-paying jobs. We argue that those results are best explained by implicit contracts where workers and firms share risks. We provide extensive qualitative data suggesting that employment contracts in the Philippines allow for such flexibility.