S01-S2 Regional Resilience in the face of Natural Disasters and Climate Change
Tracks
Special Sessions
| Wednesday, August 30, 2017 |
| 2:00 PM - 3:30 PM |
| AB A8 (0008) |
Details
Conveners: Alessandra Faggian, Luciana Lazzeretti, Silvia Rita Sedita, Jouke van Dijk / Chair: Giulia Urso
Speaker
Dr. Maria Giulia Pezzi
Gran Sasso Science Institute
Mr César Andrés Mendoza Valencia
Phd. Student
Universidad Católica Del Norte
Natural Disasters and Informality: Effects of the 2016 Ecuadorian Earthquake on Labor Informality
Author(s) - Presenters are indicated with (p)
Andres Mendoza, Viviana Carriel, Benjamin Jara
Discussant for this paper
Maria Giulia Pezzi
Abstract
This paper analyzes the effects on informal employment, caused by the Ecuadorian earthquake that occurred in April 2016, which mainly affected the coastal regions of the country. The impact evaluation technique known as difference in difference will be used to empirically analyze the effects. To define informality, we use the recommendations of the Seventeenth International Conference of Labor Statisticians (2003) of the International Labor Organization.
Estimates suggest that informal employment acts as a mechanism to counteract the destruction of formal employment caused by the natural disaster and its consequent impact on the local productive sector in the affected areas. However, preliminary results are not robust to all specifications, since the coefficients are statistically significant just in certain models.
Finally, we study the economic determinants that affect the increase or decrease of informality in the Ecuadorian case, such as: Gross Domestic Product (GDP), international oil prices, government policies related to the labor market (affiliation to the Ecuadorian Institute of Social Security, increases in minimum wage), tax policy reform, public expenditures destined to the reconstruction of the zones affected by the earthquake, productive sector (primary, secondary, tertiary), etc.
The research offers valuable inputs to decision-makers to help develop public policies to protect employment, and promote economic recovery of the affected territories.
Estimates suggest that informal employment acts as a mechanism to counteract the destruction of formal employment caused by the natural disaster and its consequent impact on the local productive sector in the affected areas. However, preliminary results are not robust to all specifications, since the coefficients are statistically significant just in certain models.
Finally, we study the economic determinants that affect the increase or decrease of informality in the Ecuadorian case, such as: Gross Domestic Product (GDP), international oil prices, government policies related to the labor market (affiliation to the Ecuadorian Institute of Social Security, increases in minimum wage), tax policy reform, public expenditures destined to the reconstruction of the zones affected by the earthquake, productive sector (primary, secondary, tertiary), etc.
The research offers valuable inputs to decision-makers to help develop public policies to protect employment, and promote economic recovery of the affected territories.
