Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/303180 
Year of Publication: 
2024
Series/Report no.: 
Bank of Canada Staff Working Paper No. 2024-32
Publisher: 
Bank of Canada, Ottawa
Abstract: 
We analyze 40 years' worth of natural disaster shocks in Canada, using a local projection framework to assess their impact on provincial labour markets. We find that disasters decrease hours worked within a week and lower wage growth in the medium run. The impact is driven by periods of employment slack, which suggests that disasters act as a catalyst for already weak local economies. We also find a more tempered response over time, possibly due to adaptation or stronger federal financial support. Finally, we document substantial heterogeneity across disaster types. Overall, our study highlights that natural disasters can detrimentally affect vulnerable workers through the income channel.
Subjects: 
Climate change
Regional economic developments
Labour markets
JEL: 
C33
E24
J3
Q54
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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