Effects of Natural Disasters on Human Capital

Abstract

The extent to which natural disasters influence changes in human capital and productivity remains an open empirical question with significant policy implications. This article provides a systematic review of econometric studies examining the economic impacts of natural disasters on human capital over the past 10 to 15 years. It concentrates exclusively on quantitative studies with both macro-level and micro-level economic analyses that emphasize causal inference and offer valuable insights for policy makers. Macro-level evidence on the economic impact of natural disasters focuses on economic growth, which has direct repercussions on changes in human capital. Micro-level empirical evidence highlights new findings on how natural disasters affect educational attainment and physical health outcomes. The article also discusses key limitations of existing studies and offers directions for future research.