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Long-Run Consequences of Exposure to Natural Disasters

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  • Krzysztof Karbownik
  • Anthony Wray

Abstract

We explore whether fetal and postnatal exposure to tropical cyclones affects education and income in adulthood by using World War I draft records linked to census data. Difference-in-differences estimates indicate that white males born in hurricane-prone US states who experienced a hurricane in utero or as infants had 5% lower income. Labor force participation was unaffected, while education and migration account for a small portion of the effects on income. Empirical tests suggest the persistent impact of damage is an unlikely channel. Thus, we attribute the findings to lower health capital stemming from temporary disruption in the aftermath of storms.

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  • Krzysztof Karbownik & Anthony Wray, 2019. "Long-Run Consequences of Exposure to Natural Disasters," Journal of Labor Economics, University of Chicago Press, vol. 37(3), pages 949-1007.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/702652
    DOI: 10.1086/702652
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    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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