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Natural Disasters and the Family in Areas with High Levels of Insurance

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  • Adan, Silverio-Murillo

Abstract

A natural disaster can greatly reduce human capital accumulation by households, and decrease the possibility of social mobility. Many of the actual studies of natural disasters are based on areas with low levels of insurance and high rates of poverty. In this study, I analyze the effect of the hurricane Odile in Mexico on income, consumption and education outcomes in an area with a relative high level of insurance on the principal economic activity and low rates of poverty. To analyze the effects of the hurricane on the incomes of interest, I use a difference-in-difference (DID) estimation approach. I do not find evidence of the effects of the hurricane Odile on income, school attendance, or expenditures of food. However, I find evidence that the hurricane affected some prices, and a decrease in the consumption of goods such as chicken, milk, and eggs. This reduction is observed when the head of the household is a man, but not when the head of the household is a woman.

Suggested Citation

  • Adan, Silverio-Murillo, 2016. "Natural Disasters and the Family in Areas with High Levels of Insurance," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235353, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235353
    DOI: 10.22004/ag.econ.235353
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    References listed on IDEAS

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    1. Cameron, Lisa A & Worswick, Christopher, 2001. "Education Expenditure Responses to Crop Loss in Indonesia: A Gender Bias," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 351-363, January.
    2. Kazianga, Harounan & Udry, Christopher, 2006. "Consumption smoothing? Livestock, insurance and drought in rural Burkina Faso," Journal of Development Economics, Elsevier, vol. 79(2), pages 413-446, April.
    3. Robert Jensen, 2000. "Agricultural Volatility and Investments in Children," American Economic Review, American Economic Association, vol. 90(2), pages 399-404, May.
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