Natural Disasters and Labor Market Outcomes in Mexico

Ivonne Acevedo, Francesca Castellani, Carlos Lopez de la Cerda, Giulia Lotti and Miguel Székely

No 13131, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: This study examines the relationship between climate change-induced weather emergencies and labor market outcomes in Mexico from 2016 to 2020. Using panel data and a two-way fixed effects estimation, the analysis focuses on storms, floods, wildfires, and landslides. The results show that storms can have significant negative associations with labor market outcomes. When living in municipalities affected by storms individuals experience 3.5% lower wages. Also, storms are associated to a decrease in weekly working hours, while the rest of weather-related emergencies do not show significant effects. Furthermore, the probability of employment is negatively and significantly affected by storms, resulting in a 1 percentage point reduction in the likelihood of being employed.

Keywords: climate change; Weather emergencies; Labor Market Outcomes; Mexico; Storms; floods (search for similar items in EconPapers)
JEL-codes: J21 J30 Q54 (search for similar items in EconPapers)
Date: 2023-10
New Economics Papers: this item is included in nep-dev and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:13131

DOI: 10.18235/0005187

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