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Journal of Labor Economics Vol. 37 No. 3 2019

Long-Run Consequences of Exposure to Natural Disasters

Krzysztof Karbownik1; Anthony Wray2

1 Emory University · 2 University of Southern Denmark

open access

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.

DOI
10.1086/702652
Volume
37
Issue
3
Pages
949-1007
Language
en
Sources
openalex crossref

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