Hurricanes and labor market outcomes: Evidence for Mexico

Hurricanes are becoming frequent events that affect more people every time, and in this context the identification of the effects on the labor market may be important for the policy design of mechanisms to cope more effectively with these shocks. Using hurricanes as exogenous shocks and with microdata from 32 metropolitan areas in Mexico from 2000 to 2011, we analyze the effect on the returns for skill levels, hours worked and jobs with access to social security. Results show that the impact seems to be mostly positive on wages and formal jobs for low educated workers. There is no specific pattern of results for intensity of the hurricanes. (C) 2012 Elsevier Ltd. All rights reserved.