Mitigation of Long-Term Human Capital Losses from Natural Disasters: Evidence from the Philippines

Abstract

Abstract The detrimental effects of natural disasters on human capital during childhood are well-documented. However, little is known about whether, and to what extent, these impacts can be mitigated in the long term. This study analyzes whether a school infrastructure program can mitigate the adverse effects of extreme weather shocks on long-term children's education and labor market outcomes. This article uses a triple difference model that exploits the geographic variation of super-typhoons combined with the age-cohort exposure to, and spatial variation of, a secondary school infrastructure program in the Philippines. This study finds that the school infrastructure program almost entirely mitigated the negative effect of typhoons on educational attainment. These differential effects of the program on education among typhoon-affected children are also associated with their higher likelihood of working in a high-skilled occupation, in the non-agricultural sector, and of migrating overseas.