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CID Graduate Student and Postdoctoral Fellow Working Paper No. 43

January 2010

The Impact of Natural Disasters on Human Development and Poverty at the Municipal Level in Mexico

Eduardo Rodriguez-Oreggia

Abstract

This paper seeks to analyze the impact of natural hazards on human development and poverty at the municipal level in Mexico. We control for a set of geographical and natural location characteristics which make municipalities more prone to the occurrence of these events. We also employ a set of institutional, economic and demographic characteristics to control for baseline heterogeneity. Using an adjusted difference-in-difference regression with data for 2000 and 2005, results show a significant decrease of social indicators for general events, and especially for flood and droughts.

Keywords: natural disasters, impact, poverty, human development, geography

JEL codes: C52, I31, O10, O54, Q54

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