Labor Market Impacts of Flooding in the United States

Judhajit Chakraborty, Jude Bayham, Christopher Goemans, Dale Manning, Diellza Muriqi and Jordan Suter

No 404305, 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri from Agricultural and Applied Economics Association

Abstract: This study investigates the labor market consequences of floods – historically among the most lethal and expensive natural disasters in the United States. Using quarterly, county-level employment and wage data spanning 1996-2023, our empirical approach distinguishes between flash floods and floods with gradual, slower onset patterns (non-flash floods). The empirical results show that an additional day of flash floods in a quarter reduces county-level employment and wages by 0.13% and 0.15% respectively. We find that total wages diminished by an average of $6.2 billion per year (in 2023 USD) between 1996 and 2023 as a result of flash and non-flash floods. Sectoral analyses show that wage impacts occur in both goods-producing and service sectors while goods-producing sectors drive employment effects. Heterogeneous effects reveal that economically vulnerable counties experience larger negative impacts from both flood types and that both coastal and inland counties face negative economic disruptions. Taken together, the sub-annual analysis uncovers labor market disruptions that are masked in annual aggregates, advancing understanding of flood impacts and informing the design of policies to build resilience against shocks.

Keywords: Dairy Production/Industries; Labor and Human Capital (search for similar items in EconPapers)
Pages: 43
Date: 2026
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Related works:
Working Paper: Labor Market Impacts of Flooding in the United States (2025)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea26:404305

DOI: 10.22004/ag.econ.404305

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