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The Returns to Education in the Context of a Natural Disaster: Evidence from the 2010 Earthquake in Haiti

Tillmann Heidelk

No 2019-17, Working Papers ECARES from ULB -- Universite Libre de Bruxelles

Abstract: This paper investigates the impact of the 2010 Haiti earthquake on individual monetary returns to education. The earthquake caused major destruction of human and physical capital. The exogenous shock gives rise to a natural experiment. The analysis applies a Mincerian equation in a difference-in-differences framework, employing individual-level repeated cross section data from before and after the earthquake. The returns decreased on average by 37%, especially in equipment-capital intensive industry. Higher educated individuals adjust into low-paying self-employment or agriculture. The returns are particularly shock-sensitive for urban residents, migrants, males, and people over age 25.

Keywords: Returns to education; Earthquake; Natural disaster; Natural experiment; Haiti; Difference-in-differences; Difference-in-differences-in-differences (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev
Date: 2019-06
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Handle: RePEc:eca:wpaper:2013/288669