The Effect of 2015 Nepal Earthquake on Labor Market Outcomes
This paper looks at the effect of the 2015 earthquake on labor market outcomes. Using Nepal DHS data and geographical variation in exposure to the earthquake, I employ a difference in differences (DID) strategy to estimate the effect of earthquake on employment and examine changes in employment across the agricultural and non-agricultural sectors. I find that overall employment declines by 1.3 percentage points, for every 100 kilometer proximity to the epicenter. The effects are driven primarily by the rural sector, which sees a 2.2 percentage point decline. Caste and gender-based disaggregation reveals a disproportionate negative effect on rural, low-caste women, who gradually shift out of agriculture into non-agricultural sectors. These results highlight the unequal employment impacts of natural disasters, along with structural changes that accompany job losses.