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Tillmann Heidelk, ECARES Print
Friday, 07 December 2018, 12:15 - 13:15

Tillmann Heidelk, ECARES

The Impact of an Earthquake in Haiti on Returns to Schooling

Abstract: In 2010, Haiti was struck by a 7.0Mw earthquake. The natural disaster was a negative shock to physical capital, and close to the epicenter a negative shock to both human and physical capital. Individuals who were strongly exposed to the earthquake experienced a decrease of their individual monetary returns to education. The value of education is particularly shock-sensitive for internal migrants, males, and recent labor entrees. The results may provide insights to rationalize the limited educational attainment in Haiti despite sizable potential economic returns. The earthquake was an exogenous shock which gives rise to a natural experiment. The analysis applies a Mincerian equation in a difference-in-difference framework, employing individual-level repeated cross section data from before and after the earthquake.

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