The tempest: Short- and long-term consequences of a natural disaster for children׳s development

This paper analyzes the short- and long-run consequences of a natural disaster on children׳s education and health. The particular focus lies on variation in idiosyncratic shocks to households using housing damages caused by a super typhoon as a proxy. Relying on individual panel data and a setting in which typhoons are a relatively rare event, we find negative and persistent effects on children׳s education but no effects on children׳s health. Effects on education are likely driven by a shift in parental investments made to cope with the economic consequences of typhoon damages. Subgroup analysis suggests that results are stronger for girls, children with no older siblings, children from poor families, and families with no strong family or social network.