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The tempest: Short- and long-term consequences of a natural disaster for children׳s development
Institution:1. Université de Fribourg, Switzerland;2. Swiss Institute for Empirical Economic Research (SEW), Varnbüelstrasse 14, 9000 St. Gallen, Switzerland;1. Goa Business School, Goa University, Goa, India;2. Department of Economics, Parvatibai Chowgule College of Arts & Science, Margao, Goa, India;1. Inter-American Development Bank 1300 New York AVE NW, SE-948, 20577 Washington DC, USA;2. Centro de Estudios Regionales Cafeteros y Empresariales Km 11 Via al Magdalena, Manizales, Caldas, Colombia;1. Joint Centre for Disaster Research, Massey University, Wellington, New Zealand;2. Research and Evaluation, School of People, Environment and Planning, Massey University, Wellington, New Zealand;1. Center for Experimental and Applied Economics (CEAE), Department of Applied Economics and Statistics, University of Delaware, Newark, DE 19716, USA;2. Department of Economics, North South University, Dhaka, Bangladesh;3. Department of Economics, St. Louis University, Saint Louis, MO, USA
Abstract:This paper analyzes the short- and long-run consequences of a natural disaster on children׳s education and health. The particular focus lies on variation in idiosyncratic shocks to households using housing damages caused by a super typhoon as a proxy. Relying on individual panel data and a setting in which typhoons are a relatively rare event, we find negative and persistent effects on children׳s education but no effects on children׳s health. Effects on education are likely driven by a shift in parental investments made to cope with the economic consequences of typhoon damages. Subgroup analysis suggests that results are stronger for girls, children with no older siblings, children from poor families, and families with no strong family or social network.
Keywords:Child development  Natural disaster  Idiosyncratic shock
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