How hurricanes affect employment and wages in local labor markets

Arbeitspapier

This paper adopts a generalized-difference-in-difference (GDD) technique outlined in Ariel R. Belasen and Solomon W. Polachek (IZA Discussion Paper #2976) to examine the impact of hurricanes on the labor market. We find that earnings of the average worker in a Florida county rises over 4% within the first quarter of being hit by a major Category 4 or 5 hurricane relative to counties not hit, and rises about 1¼% for workers in Florida counties hit by less major Category 1-3 hurricanes. Concomitantly, employment falls between 1½ and 5% depending on hurricane strength. On the other hand, the effects of hurricanes on neighboring counties have the opposite effects, moving earnings down between 3 and 4% in the quarter the hurricane struck. To better examine the specific shocks, we also observe sectoral employment shifts. Finally, we conduct a time-series analysis and find that over time, there is somewhat of a cobweb with earnings and employment rising and falling each quarter over a two-year time period.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 3407

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Labor Demand
• Thema: Exogenous shock ; difference-in-difference estimation ; local labor market ; earnings ; employment ; sectoral shifts ; Sturm ; Regionaler Arbeitsmarkt ; USA ; Arbeitsmarkt ; Beschäftigung ; Lohn ; Florida

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Belasen, Ariel R. ; Polachek, Solomon W.
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2008

Weitere Informationen

• Handle: http://hdl.handle.net/10419/35104
• URN: urn:nbn:de:101:1-2008032097
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ