Determinants of Displacement and Displacement Duration Following Hurricanes Katrina and Rita: A Hurdle Model Approach

Abstract

In 2005, Hurricanes Katrina and Rita caused widespread destruction and displacement in parts of Louisiana, Alabama, and Mississippi. This research evaluates determinants of displacement and, conditional on being displaced, the duration of displacement for households living in areas affected by these hurricanes. Hurdle Models, which assume that different processes govern zero outcomes (i.e., no displacement) and positive outcomes (i.e., amount of time displaced), are used to model the likelihood of household displacement and its duration as a function of socioeconomic characteristics, hurricane-caused property and neighborhood damage, social support, and financial assistance. Results show that mobile home residence, marital status, educational attainment, the presence of children, and property and neighborhood damage affect the likelihood and expected length of displacement among sample respondents. Financial assistance and social support are also correlated with displacement and its duration, but endogeneity concerns complicate the interpretation of these results. The findings highlight the diversity of factors that slow households’ return following displacement and underscore the need for additional research on the role of social capital in determining hazard-related outcomes.