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The short-run, dynamic employment effects of natural disasters: New insights from Puerto Rico

Author

Listed:
  • Alessandro Barattieri

    (UQAM - Université du Québec à Montréal = University of Québec in Montréal)

  • Patrice Borda

    (CREDDI - Centre de Recherche en Economie et en Droit du Développement Insulaire [UR7_2] - UA - Université des Antilles)

  • Alberto Brugnoli

    (UniBg - Università degli Studi di Bergamo = University of Bergamo)

  • Martino Pelli

    (CIREQ - Centre interuniversitaire de recherche en économie quantitative, CIRANO - Centre interuniversitaire de recherche en analyse des organisations - UQAM - Université du Québec à Montréal = University of Québec in Montréal, GREDI - Groupe de recherche en économie et développement international [Sherbrooke] - École de gestion de l'Université de Sherbrooke - UdeS - Université de Sherbrooke)

  • Jeanne Tschopp

    (UNIBE - Universität Bern = University of Bern = Université de Berne)

Abstract

We study the short-run, dynamic employment effects of natural disasters. We exploit monthly data for 70 3- digits NAICS industries and 78 Puerto Rican counties over the period 1995–2019. Our exogenous measure of exposure to natural disasters is computed using the maximum wind speed recorded in each county during each hurricane. Using panel local projections, we find that after the ‘‘average'' hurricane, employment falls by 0.5% on average. Across industries, we find substantial heterogeneity in the employment responses. Employment increases in some industries while in others employment decreases after a hurricane. This heterogeneity can be partly explained by input–output linkages.

Suggested Citation

  • Alessandro Barattieri & Patrice Borda & Alberto Brugnoli & Martino Pelli & Jeanne Tschopp, 2023. "The short-run, dynamic employment effects of natural disasters: New insights from Puerto Rico," Post-Print hal-03926031, HAL.
    • Handle: RePEc:hal:journl:hal-03926031
    DOI: 10.1016/j.ecolecon.2022.107693
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    More about this item

    Keywords

    Hurricanes; Employment; High-frequency data; Local projections;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate 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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