The local labour market effects of earthquakes

Roberto Basile · Luisa Giallonardo · Lelio Iapadre · Maria Gabriela Ladu · Riccardo Persio

25 citations0/0 files storedRegional Studies

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Earthquake and Disaster Impact Studies Regional Economic and Spatial Analysis Regional resilience and development

Abstract

Using a balanced panel of local labour market areas (LLMAs) and adopting a new difference-in-differences approach with multiple time periods and multiple groups, this paper assesses the causal effects on local labour market outcomes of the earthquakes that occurred in Italy in 2009, 2012 and 2016. The results show a strong heterogeneity: the 2009 event had significant negative and persistent impacts on the employment rate of the LLMAs involved, while there were no adverse effects for the LLMAs affected by the earthquakes in 2012 and 2016. We also extend the analysis at the industry level in order to highlight the sectoral shifts that typically characterise the aftermath of these natural disasters.

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References

2019The Economic Impacts of Natural Disasters: A Review of Models and Empirical Studies 2012Natural Disasters and Growth: Going Beyond the Averages 2014Natural disasters and economic growth: A meta-analysis 2008Can natural disasters have positive consequences? Investigating the role of embodied technical change 2014Natural disasters, growth and institutions: A tale of two earthquakes 2008How Hurricanes Affect Wages and Employment in Local Labor Markets 2016Natural disasters and labor markets 2018The impact of earthquakes on economic activity: evidence from Italy

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