The Economic Growth Impact of Hurricanes: Evidence from US Coastal counties

We estimate for the first time the impact of hurricane strikes on local economic growth rates and how this is reflected in more aggregate growth patterns. To this end we assemble a panel data set of US coastal counties' growth rates and construct a novel hurricane destruction index that is based on a monetary loss equation, local wind speed estimates derived from a physical wind field model, and local exposure characteristics. Our econometric results suggest that in response to a hurricane strike a county's annual economic growth rate will initially fall by 0.8, but then partially recover by 0.2 percentage points. While the pattern is qualitatively similar at the state level, the net effect over the long term is negligible. Hurricane strikes do not appear to be economically important enough to be reflected in national economic growth rates.hurricanes, economic growth, US coastal counties

The Distributional impact of dams: Evidence from cropland productivity in Africa

We examine the distributional impact of major dams on cropland productivity in Africa. As our unit of analysis we use a scientifically based spatial breakdown of the continent that allows one to exactly define regions in terms of their upstream/downstream relationship at a highly disaggregated level. We then use satellite data to derive measures of cropland productivity within these areas. Our econometric analysis shows that while regions downstream benefit from large dams, cropland within the vicinity tends to suffer productivity losses during droughts. Overall our results suggest that because of rainfall shortages dams in Africa caused a net loss of 0.96 per cent in productivity over our sample period (1981-2000). However, further dam construction in appropriate areas could potentially lead to large increases in productivity even if rainfall is not plenty.dams, agricultural productivity, Africa

The impact of hurricanes on housing prices: evidence from U.S. coastal cities

We investigate the effect of hurricane strikes on housing prices in U.S. coastal cities. To this end, we construct a new index of hurricane destruction which varies over time and space. Using this index and an annual, two equation, dynamic equilibrium correction panel model with area and time fixed effects, we model the effects of hurricanes on real house process and real incomes. In our model hurricanes have a direct effect on house prices and an indirect effect via a fall in local incomes. Our results show that the typical hurricane strike raises real house prices for a number of years, with a maximum effect of between 3 % to 4 % three years after occurrence. There is also a small negative effect on real incomes. These results are stable across models and subsamples.Econometric models ; Housing - Prices

Multinational Companies, Technology Spillovers, and Plant Survival

This paper examines the effect of the presence of multinational companies on plant survival in the host country. We postulate that multinational companies can impact positively on plant survival through technology spillovers. We study the nature of the effect of multinationals using a Cox proportional hazard model which we estimate using plant level data for Irish manufacturing industries. Our results show that the presence of multinationals has a life enhancing effect only on indigenous plants in high tech industries, suggesting the presence of technology spillovers. In contrast, multinationals compete with each other in low tech sectors in the host country.Multinational Companies, Technology Spillovers, Plant Survival

Changes in the Gender Wage Gap and The Returns to Firm Specific Human Capital

If employers believe females are more likely to separate from a job than males, efficient cost sharing of on-the-job-training implies that females will have higher returns to tenure. Becker and Lindsay (1994) argue that this is true empirically. (1994). Updating the analysis we find that that there is no longer a difference in the probability of leaving jobs or in returns to tenure by gender. Differences in contracts to finance on the job training can no longer explain any of the “discrimination” component in the gender wage gap.wage differentials, gender gap, tenure

Spillovers from foreign firms through worker mobility: An empirical investigation

While there has been a large empirical literature on productivity spillovers from foreign to domestic firms this literature treats the channels through which these spillover effects work as a black box. This paper attempts to fill this gap in the literature. Our results suggest that firms which are run by owners that worked for multinationals in the same industry immediately prior to opening up their own firm have higher productivity growth than other domestic firms. This suggests that these entrepreneurs bring with them some of the knowledge accumulated in the multinational which can be usefully employed in the domestic firm. We do not find any positive effects on firm level productivity if the owner had experience in multinationals in other industries, or received training by multinationals.foreign direct investment, spillovers, worker mobility, training

DO LARGE EMPLOYERS PAY MORE? THE CASE OF FIVE DEVELOPING AFRICAN COUNTRIES

Using comparable data sets for five African countries, we evaluate possible explanations for the employer-size wage effect across these countries. Our results indicate that, apart from observable worker characteristics, most theories cannot explain very much of the wage premium received in larger firms. Moreover, we find that the employer-size wage effect does not differ greatly across the five African countries. As is the case with other developing nations, however, the effect is larger than that found in the industrialised world, though unlike the industrialised world it is larger for white collar workers than for blue collar workers. Data for one of the African countries, in conjunction with other evidence, suggest that this may in part be the result of skill-biased technology having a greater effect on the firm¡¯s size-wage distribution across skill groups in developing countries.Employer Size Wage Effect, Firm Size Wage Premium

The Minimum Wage and Hours per Worker

In a competitive model we ease the assumption that efficiency units of labour are the product of hours and workers. We show that a minimum wage may either increase or decrease hours per worker and the change will have the opposite sign to the slope of the equilibrium hours hourly wage locus. Similarly, total hours worked may rise or fall. We illustrate the results throughout with a Cobb-Douglas example.Minimum wages, hours, employment

Economic development and losses due to natural disasters: the role of risk

We show that the relationship between wealth and economic losses due to natural disasters is strongly linked to disaster risk. We first build an analytical model that demonstrates how countries that face a low hazard of disasters are likely to see first increasing losses and then decreasing ones with increasing economic development. At the same time, countries that face a high hazard of disasters are likely to experience first decreasing losses and then increasing ones with increasing economic development. We then use a cross country panel dataset in conjunction with a risk exposure index to investigate whether the data is consistent with the predictions from the model. As suggested by our model, we generally find an inverse ushaped link between losses and wealth for low and medium hazard countries, but a u-shaped relationship for high hazard countries.Economic development, disasters, risk, uncertainty, hazard index

The Distributional impact of dams: Evidence from cropland productivity in Africa

We examine the distributional impact of major dams on cropland productivity in Africa. As our unit of analysis we use a scientifically based spatial breakdown of the continent that allows one to exactly define regions in terms of their upstream/downstream relationship at a highly disaggregated level. We then use satellite data to derive measures of cropland productivity within these areas. Our econometric analysis shows that while regions downstream benefit from large dams, cropland within the vicinity tends to suffer productivity losses during droughts. Overall our results suggest that because of rainfall shortages dams in Africa caused a net loss of 0.96 per cent in productivity over our sample period (1981-2000). However, further dam construction in appropriate areas could potentially lead to large increases in productivity even if rainfall is not plenty