Documento de trabajo
Labor Shakes: Mid-Run Effects of the 27F Earthquake on Unemployment
Fecha
2015Registro en:
MPRA Working Paper No. 68.935, pp. 1 - 15, Julio, 2015
Autor
Karnani Bhagwan, Mohit
Institución
Resumen
I exploit the exogenous characteristic of a natural disaster occurred in Chile in order
to explain its effects on general unemployment over affected and unaffected regions of the
country in a mid-run timespan of 5 measured years. By using a fixed effect panel data
regression model, I find that regions closer to the epicentre of the 27F earthquake showed
significantly deeper reductions of unemployment over the time in comparison to those regions
which are further from the epicentre. This effect was not observed in a significant way when
using a short-run subsample of two years. I also perform diverse robustness checks over the
estimates, all of which strongly support these findings. Thus, I conclude that more affected
regions received a prime on unemployment reduction in the mid-run lapse of these four years
after the earthquake.