The Far Reach of Hurricane Maria
Felix Friedt and
Abigail Crispin ()
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Abigail Crispin: Regis University
Economics of Disasters and Climate Change, 2022, vol. 6, issue 1, No 2, 29-71
Abstract Environmental degradation raises the frequency of natural disasters, and the growing reliance on global value chains exposes domestic labor markets to the ripple effects of these international calamities. To date, we know relatively little about such implications for U.S. labor markets. We leverage the significant disruption of Puerto Rican production and exports due to Hurricane Maria to study the spillover effects on employment in mainland U.S. labor markets. We find that the reduction in Puerto Rican import competition raises U.S. employment and the number of manufacturing establishments, particularly among pharmaceutical sectors with the highest level of industry exposure.
Keywords: Natural disaster; Spatial spillovers; Trade costs; Import competition (search for similar items in EconPapers)
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