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Tillmann Heidelk, ECARES Print
Friday, 03 May 2019, 12:15 - 13:15

Tillmann Heidelk, ECARES

The Returns to Education in the Context of a Natural Disaster : Evidence from the 2010 Earthquake in Haiti

 Abstract: This paper investigates the impact of the 2010 Haiti earthquake on individual monetary returns to education. The earthquake caused major destruction of human and physical capital. The exogenous shock gives rise to a natural experiment. The analysis applies a Mincerian equation in a difference-in-differences framework, employing individual-level repeated cross section data from before and after the earthquake. The returns decreased on average by 37%, especially in equipment-capital intensive industry. Higher educated individuals adjust into low-paying self-employment or agriculture. The returns are particularly shock-sensitive for urban residents, internal migrants, males, and people over 25 years old.

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