Transmission of employment shocks before and after the Oklahoma City tornado

This study examined the economic impact of the May 3, 1999 Oklahoma tornado outbreak on the labor markets of Oklahoma City (OK), Wichita (KS), and Kansas City (MO). In particular, this article examines the transmission of shocks to employment growth across these different labor markets. Using monthly employment data from January 1990 to December 2004, we provide empirical evidence on the cross-market relationships that existed before and after the Oklahoma City tornado. The results suggest that the impact of the wind event may have altered labor market dynamics in Oklahoma City, as well as Wichita and Kansas City.