Post-earthquake short-run labor income shifts. What happens with the distribution of wages after an earthquake?

Mendoza, César Andrés; Jara-Valencia, Benjamin

doi:10.1016/j.ijdrr.2022.103176

Cited by 4 publications

(2 citation statements)

References 44 publications

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“…The paper adds to a large literature on the economic effects of natural disasters on local economies (Lima & Barbosa, 2019: Kim & Marcouiller, 2015Xiao, 2011). We expand existing knowledge about the impacts of natural disasters on tourism demand (Huang & Min, 2002;Mazzocchi & Montini, 2001;Rosselló et al, 2020), tourism supply (Brown et al, 2021;Chen et al, 2021) and labor markets (Belasen & Polachek, 2008;Ewing et al, 2009;Fouzia et al, 2020;Mendoza & Jara, 2022;Rodríguez-Oreggia, 2013) by jointly examining the distinct temporal trajectories followed by tourism demand and supply and the hospitality labor market during and post the volcano eruption. In doing so, we can assess potential asymmetric reactions across regions, over time and among outcomes.…”

Section: Introductionmentioning

confidence: 94%

The Effect of Natural Disasters on Tourism Demand, Supply and Labour Markets: Evidence from La Palma Volcano Eruption

Leoni

Boto‐García

2022

SSRN Journal

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Section: Introductionmentioning

confidence: 94%

The Effect of Natural Disasters on Tourism Demand, Supply and Labour Markets: Evidence from La Palma Volcano Eruption

Leoni

Boto‐García

2022

SSRN Journal

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“…The earthquake indicator is a suitable instrument only if the exclusion restriction holds-i.e., if the seismic phenomena are likely to influence the enrollment in school only through their impact on the land rent. In this respect, recent literature has shown that natural disasters can lead to a decrease in income inequality, resulting in lower levels of wealth inequality, due to new opportunities for poorer households (see, for instance, Abdullah et al, 2016;Mendoza and Jara, 2022;Keerthiratne and Tol, 2018). Although income data before and after these events are not available, we expect that certain institutional policies implemented to respond to major earthquakes may have provided new opportunities and increased social mobility for the less affluent segments the population, increasing in this way the size of the wealthy household share of the population.…”

Section: Historical Evidence Supporting the Exclusion Restrictionmentioning

confidence: 99%

Educational Take-off and the Role of Wealth

Battisti,

Gravina,

Lavezzi

et al. 2024

Preprint

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What is the role of a society’s wealth in influencing educational choices? Although the theoretical literature provides several possible answers, from an empirical viewpoint answering this question is not straightforward. Indeed, nowadays such an issue cannot be typically inspected before starting the college, due to the compulsory public education laws in force at lower education levels in nearly all countries. We investigate this problem by employing a unique dataset covering Sicilian wealth shares and primary school enrollment in the year 1858 at municipal level. This represents an ideal setting to study our research question as, at that time, schools at the lowest grade levels were available in almost each Sicilian municipality, but their attendance was not compulsory. Our identification strategy relies on the historical heritage of seismic events in shaping mid-19th century land and property distribution, which allowed for the emergence of a class of “wealthy” households. Results of the analysis show that, even in an almost entirely agrarian society, household wealth played a decisive role in educational choices: an increase of 10% in the share of wealthy households implied an increase of approximately 0.6% of the share of students enrolled in primary schools. We discuss the implications of these results for the existing evidence on the nexus between wealth and education, and provide a number of falsification tests that support our main results. In addition, we document the long-lasting impacts of early wealth conditions on a series of institutional and economic outcomes. JEL Classification: I24, O15, N93.

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The Effect of Natural Disasters on Hotel Demand, Supply and Labour Markets: Evidence from the La Palma Volcano Eruption

Leoni,

Boto-García

2023

Environ Resource Econ

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Natural disasters are an important deterrent factor for tourism activities from both supply and demand perspectives. This paper studies the short-term effect of a volcano eruption on hotel demand, supply and hospitality labour in La Palma (Spain), an island economy that is highly dependent on the tourism sector. Based on a monthly panel dataset, we employ seemingly unrelated difference-in-differences (SUR-DiD) to identify the distinct responses of these three outcomes both during and post eruption. We are particularly interested in examining the asymmetry in their elasticities to the shock, which serve as indicators of disaster resilience. Potential spillover effects on nearby islands are also examined. We find that the eruption resulted in significant yet asymmetrical drops in international demand, number of hotels opened, and hospitality workers hired. Our findings inform about the resilience of the tourism industry to natural disasters, offering relevant insights about heterogeneous effects depending on exposure to the event.

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Post-earthquake short-run labor income shifts. What happens with the distribution of wages after an earthquake?

Cited by 4 publications

References 44 publications

The Effect of Natural Disasters on Tourism Demand, Supply and Labour Markets: Evidence from La Palma Volcano Eruption

The Effect of Natural Disasters on Tourism Demand, Supply and Labour Markets: Evidence from La Palma Volcano Eruption

Educational Take-off and the Role of Wealth

The Effect of Natural Disasters on Hotel Demand, Supply and Labour Markets: Evidence from the La Palma Volcano Eruption

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