Faithin Omaha eBook Collection

Download or read book Why Some Don’t Belong—The Distributional Effects of Natural Disasters written by Mrs. Nina Budina and published by International Monetary Fund. This book was released on 2023-01-06 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: When and how do natural disasters worsen within-country income inequality? We highlight the channels through which natural disasters may have distributional effects and empirically analyze when and which type of disasters affect inequality in advanced economies (AEs) and in emerging and developing economies (EMDEs). We find that in AEs inequality increases after severe disasters. We also find that inequality increases if severe disasters are associated with growth slowdowns or there are multiple disasters in a year in AEs and in EMDEs. Descriptive evidence for the US also suggests that adverse labor market effects of disasters are likely to fall on vulnerable groups.