Long-Run Consequences of Exposure to Natural Disasters

Krzysztof Karbownik and Anthony Wray

Journal of Labor Economics, 2019, vol. 37, issue 3, 949 - 1007

Abstract: We explore whether fetal and postnatal exposure to tropical cyclones affects education and income in adulthood by using World War I draft records linked to census data. Difference-in-differences estimates indicate that white males born in hurricane-prone US states who experienced a hurricane in utero or as infants had 5% lower income. Labor force participation was unaffected, while education and migration account for a small portion of the effects on income. Empirical tests suggest the persistent impact of damage is an unlikely channel. Thus, we attribute the findings to lower health capital stemming from temporary disruption in the aftermath of storms.

Date: 2019
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Related works:
Working Paper: Long-run Consequences of Exposure to Natural Disasters (2016)
Working Paper: Long-run Consequences of Exposure to Natural Disasters (2016)
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