IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_4168.html
   My bibliography  Save this paper

The Tempest: Natural Disasters, Early Shocks and Children's Short- and Long-Run Development

Author

Listed:
  • Eva Deuchert
  • Christina Felfe

Abstract

Economic theory predicts that adverse shocks during early childhood have detrimental short- and long-run consequences for children’s development. We examine this hypothesis by analyzing the short-and long-run effects on children’s health and education of a specific shock: housing damages caused by a super typhoon. Our results reveal negative effects on children’s education - not, however, on health. The effects on children’s education aggravate over time. Empirical evidence indicates that the main underlying channel is a shock on families’ wealth.

Suggested Citation

  • Eva Deuchert & Christina Felfe, 2013. "The Tempest: Natural Disasters, Early Shocks and Children's Short- and Long-Run Development," CESifo Working Paper Series 4168, CESifo.
  • Handle: RePEc:ces:ceswps:_4168
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/cesifo1_wp4168.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sarah Baird & Craig McIntosh & Berk Özler, 2011. "Cash or Condition? Evidence from a Cash Transfer Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(4), pages 1709-1753.
    2. Gordon B. Dahl & Lance Lochner, 2012. "The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit," American Economic Review, American Economic Association, vol. 102(5), pages 1927-1956, August.
    3. Cunha, Flavio & Heckman, James J. & Lochner, Lance, 2006. "Interpreting the Evidence on Life Cycle Skill Formation," Handbook of the Economics of Education, in: Erik Hanushek & F. Welch (ed.), Handbook of the Economics of Education, edition 1, volume 1, chapter 12, pages 697-812, Elsevier.
    4. Abhijit Banerjee & Esther Duflo & Gilles Postel-Vinay & Tim Watts, 2010. "Long-Run Health Impacts of Income Shocks: Wine and Phylloxera in Nineteenth-Century France," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 714-728, November.
    5. Himaz, Rozana, 2008. "Welfare Grants and Their Impact on Child Health: The Case of Sri Lanka," World Development, Elsevier, vol. 36(10), pages 1843-1857, October.
    6. Mevlude Akbulut-Yuksel, 2014. "Children of War: The Long-Run Effects of Large-Scale Physical Destruction and Warfare on Children," Journal of Human Resources, University of Wisconsin Press, vol. 49(3), pages 634-662.
    7. Thomas Chaney & David Sraer & David Thesmar, 2012. "The Collateral Channel: How Real Estate Shocks Affect Corporate Investment," American Economic Review, American Economic Association, vol. 102(6), pages 2381-2409, October.
    8. Steven Stillman & Duncan Thomas, 2008. "Nutritional Status During an Economic Crisis: Evidence from Russia," Economic Journal, Royal Economic Society, vol. 118(531), pages 1385-1417, August.
    9. Sharon Maccini & Dean Yang, 2009. "Under the Weather: Health, Schooling, and Economic Consequences of Early-Life Rainfall," American Economic Review, American Economic Association, vol. 99(3), pages 1006-1026, June.
    10. Basu, Kaushik & Das, Sanghamitra & Dutta, Bhaskar, 2010. "Child labor and household wealth: Theory and empirical evidence of an inverted-U," Journal of Development Economics, Elsevier, vol. 91(1), pages 8-14, January.
    11. Fumihiko Imamura & Dang Van To, 1997. "Flood and Typhoon Disasters in Viet Nam in the Half Century Since 1950," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 15(1), pages 71-87, January.
    12. Sonia Bhalotra & Christopher Heady, 2003. "Child Farm Labor: The Wealth Paradox," The World Bank Economic Review, World Bank, vol. 17(2), pages 197-227, December.
    13. James B. Davies & Susanna Sandström & Anthony Shorrocks & Edward N. Wolff, 2011. "The Level and Distribution of Global Household Wealth," Economic Journal, Royal Economic Society, vol. 121(551), pages 223-254, March.
    14. Yamauchi, Futoshi & Yohannes, Yisehac & Quisumbing, Agnes R., 2009. "Natural disasters, self-Insurance, and human capital investment: Evidence from Bangladesh, Ethiopia, and Malawi," IFPRI discussion papers 881, International Food Policy Research Institute (IFPRI).
    15. Andrew D. Foster & Mark R. Rosenzweig, 2001. "Imperfect Commitment, Altruism, And The Family: Evidence From Transfer Behavior In Low-Income Rural Areas," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 389-407, August.
    16. Tom Bundervoet & Philip Verwimp & Richard Akresh, 2009. "Health and Civil War in Rural Burundi," Journal of Human Resources, University of Wisconsin Press, vol. 44(2).
    17. Bruce Sacerdote, 2012. "When the Saints Go Marching Out: Long-Term Outcomes for Student Evacuees from Hurricanes Katrina and Rita," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 109-135, January.
    18. Akresh, Richard & Lucchetti, Leonardo & Thirumurthy, Harsha, 2012. "Wars and child health: Evidence from the Eritrean–Ethiopian conflict," Journal of Development Economics, Elsevier, vol. 99(2), pages 330-340.
    19. Christina Paxson & Norbert Schady, 2005. "Child Health and Economic Crisis in Peru," The World Bank Economic Review, World Bank, vol. 19(2), pages 203-223.
    20. Norbert R. Schady, 2004. "Do Macroeconomic Crises Always Slow Human Capital Accumulation?," The World Bank Economic Review, World Bank, vol. 18(2), pages 131-154.
    21. repec:hal:spmain:info:hdl:2441/75koqefued8i7pihbrl9u84p4u is not listed on IDEAS
    22. Esther Duflo, 2000. "Child Health and Household Resources in South Africa: Evidence from the Old Age Pension Program," American Economic Review, American Economic Association, vol. 90(2), pages 393-398, May.
    23. Randall K. Q. Akee & William E. Copeland & Gordon Keeler & Adrian Angold & E. Jane Costello, 2010. "Parents' Incomes and Children's Outcomes: A Quasi-experiment Using Transfer Payments from Casino Profits," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 86-115, January.
    24. William D. Nordhaus, 2006. "The Economics of Hurricanes in the United States," NBER Working Papers 12813, National Bureau of Economic Research, Inc.
    25. Ferreira, Francisco H. G. & Schady, Norbert, 2008. "Aggregate economic shocks, child schooling and child health," Policy Research Working Paper Series 4701, The World Bank.
    26. Ballesteros, Marife M., 2001. "The Dynamics of Housing Demand in the Philippines: Income and Lifecycle Effects," Discussion Papers DP 2001-15, Philippine Institute for Development Studies.
    27. Robert Jensen, 2000. "Agricultural Volatility and Investments in Children," American Economic Review, American Economic Association, vol. 90(2), pages 399-404, May.
    28. Fafchamps, Marcel & Lund, Susan, 2003. "Risk-sharing networks in rural Philippines," Journal of Development Economics, Elsevier, vol. 71(2), pages 261-287, August.
    29. John Cockburn & Benoit Dostie, 2007. "Child Work and Schooling: The Role of Household Asset Profiles and Poverty in Rural Ethiopia," Journal of African Economies, Centre for the Study of African Economies, vol. 16(4), pages 519-563, August.
    30. Yanos Zylberberg, 2010. "Do tropical typhoons smash community ties? Theory and evidence from Vietnam," PSE Working Papers halshs-00564941, HAL.
    31. Akee, Randall K. Q. & Simeonova, Emilia & Copeland, William & Angold, Adrian & Costello, Jane E., 2010. "Does More Money Make You Fat? The Effects of Quasi-Experimental Income Transfers on Adolescent and Young Adult Obesity," IZA Discussion Papers 5135, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yoshito Takasaki, 2013. "Do natural disasters beget fraud victimization?: Unrealized coping through labor migration among the poor," Tsukuba Economics Working Papers 2013-002, Faculty of Humanities and Social Sciences, University of Tsukuba.
    2. J. V. Rush, 2018. "The Impact of Natural Disasters on Education in Indonesia," Economics of Disasters and Climate Change, Springer, vol. 2(2), pages 137-158, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Felfe, Christina & Deuchert. Eva, 2011. "The tempest: Using a natural disaster to evaluate the link between wealth and child development," Economics Working Paper Series 1146, University of St. Gallen, School of Economics and Political Science.
    2. Deuchert, Eva & Felfe, Christina, 2015. "The tempest: Short- and long-term consequences of a natural disaster for children׳s development," European Economic Review, Elsevier, vol. 80(C), pages 280-294.
    3. Denis Cogneau & Rémi Jedwab, 2012. "Commodity Price Shocks and Child Outcomes: The 1990 Cocoa Crisis in Côte d'Ivoire," Economic Development and Cultural Change, University of Chicago Press, vol. 60(3), pages 507-534.
    4. Richard Akresh & Sonia Bhalotra & Marinella Leone & Una Osili, 2023. "First- and Second-Generation Impacts of the Biafran War," Journal of Human Resources, University of Wisconsin Press, vol. 58(2), pages 488-531.
    5. Eskander, Shaikh M.S.U. & Barbier, Edward B., 2022. "Long-term impacts of the 1970 cyclone in Bangladesh," World Development, Elsevier, vol. 152(C).
    6. Minoiu, Camelia & Shemyakina, Olga N., 2014. "Armed conflict, household victimization, and child health in Côte d'Ivoire," Journal of Development Economics, Elsevier, vol. 108(C), pages 237-255.
    7. van Ewijk, Reyn & Lindeboom, Maarten, 2022. "Selective mortality and fertility and long run health effects of prenatal wartime exposure," Economics & Human Biology, Elsevier, vol. 47(C).
    8. Richard Akresh & Sonia Bhalotra & Marinella Leone & Una Osili, 2017. "Hunger Games: First and Second Generation Impacts of the Biafran War," HiCN Working Papers 254, Households in Conflict Network.
    9. Florence Kondylis & Valerie Mueller, 2014. "Economic consequences of conflict and environmental displacement," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 14, pages 388-424, Edward Elgar Publishing.
    10. Conte, Bruno & Piemontese, Lavinia & Tapsoba, Augustin, 2023. "The power of markets: Impact of desert locust invasions on child health," Journal of Health Economics, Elsevier, vol. 87(C).
    11. Armand Mboutchouang Kountchou & Soazic Elise Wang Sonne & Gadom Djal Gadom, 2019. "The Local Impact of Armed Conflict on Children’s Nutrition and Health Outcomes: Evidence from Chad," HiCN Working Papers 301, Households in Conflict Network.
    12. Sabarwal, Shwetlena & Sinha, Nistha & Buvinic, Mayra, 2010. "How do women weather economic shocks ? a review of the evidence," Policy Research Working Paper Series 5496, The World Bank.
    13. James Fenske & Igor Zurimendi, 2017. "Oil and ethnic inequality in Nigeria," Journal of Economic Growth, Springer, vol. 22(4), pages 397-420, December.
    14. Hönig, Tillman, 2017. "The Impact of Peace: Evidence from Nigeria," MPRA Paper 83302, University Library of Munich, Germany.
    15. Manisha Shah & Bryce Millett Steinberg, 2017. "Drought of Opportunities: Contemporaneous and Long-Term Impacts of Rainfall Shocks on Human Capital," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 527-561.
    16. Reyn van Ewijk & Maarten Lindeboom, 2016. "Why people born during World War II are healthier," Working Papers 1619, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    17. Groppo, Valeria & Kraehnert, Kati, 2016. "Extreme Weather Events and Child Height: Evidence from Mongolia," World Development, Elsevier, vol. 86(C), pages 59-78.
    18. Richard Akresh, 2016. "Climate Change, Conflict, and Children," HiCN Working Papers 221, Households in Conflict Network.
    19. Dupas, Pascaline & Robinson, Jonathan, 2012. "The (hidden) costs of political instability: Evidence from Kenya's 2007 election crisis," Journal of Development Economics, Elsevier, vol. 99(2), pages 314-329.
    20. Catherine ARAUJO BONJEAN & Stephanie BRUNELIN & Catherine SIMONET, 2012. "Impact of climate related shocks on child’s health in Burkina Faso," Working Papers 201232, CERDI.

    More about this item

    Keywords

    child development; natural disaster; wealth shock;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_4168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.