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2021 | OriginalPaper | Chapter

6. Impacts of Ttyphoons on Local Labor Markets Based on GDD: An Empirical Study of Guangdong Province, China

Authors : Prof. Xianhua Wu, Prof. Ji Guo

Published in: Economic Impacts and Emergency Management of Disasters in China

Publisher: Springer Nature Singapore

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Abstract

What impacts do typhoons have on local labor markets? Few empirical researches have been conducted in China. By collecting the data of 23 quarters of Guangdong province from 2009 to 2014 and using generalized difference-in-difference (abbreviated GDD), this paper analyzes the impacts of typhoons on labor markets from the perspectives of general effect, regional effect, intensity effect and time effect respectively. In addition, a comparative analysis is carried out between this study and similar studies of developed countries. The results show that: (1) though the effects of typhoons on employment are insignificant, high-strength typhoons can cause a 5.15% decline in per capita labor remuneration; (2) the effects of typhoons on labor remuneration, with cyclical characteristics, circle every four quarters. The negative impacts in the current quarter are followed by two quarters of positive adjustment and the final quarter of the recovery to pre-disaster levels; (3) the results of this study are different from those of the studies whose subjects are developed countries, which may be caused by the distinctiveness of China’s labor market. Finally, conclusions and corresponding suggestions are presented.

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Footnotes
3
The main differences between GDD and difference-in-difference are presented as below: (1) the two have different number of natural experiments—difference-in-difference has only one experiment, while GDD many; (2) the two have different ways of expressing the differences in the longitudinal dimension—difference-in-difference measures through dummy variables (evaluating to 1 after natural experiments and to 0 before) (Chen and Wu 2015), while GDD through differentials, which are the variations between the value before and after the natural experiments (Belasen et al. 2007).
 
4
Since there is no data of cities’ quarterly GDP per capita and the only data available is GDP, this paper adopted cities’ quarterly GDP.
 
5
The unit employment refers to the total number of the employed who work in state-owned units, urban collective-owned units, joint ventures, joint-stock economy, foreign investment economy and the economy invested by Hong Kong, Macao and Taiwan, etc.
 
6
Other equations in this paper are differential treatment of Eqs. (6.2) and (6.3) in order to eliminate the instability of the data (Belasen et al. 2008).
 
7
The best lagged phase of typhoon variables is 2, accoring to Akaike Information Criterion (AIC) and Schwarz Criterion (SC).
 
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Metadata
Title
Impacts of Ttyphoons on Local Labor Markets Based on GDD: An Empirical Study of Guangdong Province, China
Authors
Prof. Xianhua Wu
Prof. Ji Guo
Copyright Year
2021
Publisher
Springer Nature Singapore
DOI
https://doi.org/10.1007/978-981-16-1319-7_6