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The long-term effects of natural disasters on human capital accumulation: a quasi-natural experiment based on the Yellow River floodplain area

Published online by Cambridge University Press:  29 April 2024

Weihua Yu
Affiliation:
Jinhe Center for Economic Research, Xi'an Jiaotong University, Xi'an, China
Jingjing Hu*
Affiliation:
Jinhe Center for Economic Research, Xi'an Jiaotong University, Xi'an, China
*
*Corresponding author: Jingjing Hu; Email: 787652794@qq.com

Abstract

This study exploits the correlation between Yellow River flooding and human capital accumulation using county-level data from Anhui, Hebei, Henan, Jiangsu, and Shandong provinces in China. Employing a spatial regression discontinuity approach, we compare the differences in human capital accumulation within and beyond the Yellow River floodplain areas (YRFA). Empirical results show human capital accumulation in the YRFA is at least 12.1 percent lower than outside the YRFA. Furthermore, our results demonstrate intergenerational transmission and gender differences in the negative impact of the Yellow River flooding on human capital accumulation. The baseline specifications of this study are not affected by drought and overall natural disasters. This paper documents historical human capital accumulation, clan power, and social trust, through which Yellow River flooding has a long-term impact.

Type
Research Article
Copyright
Copyright © The Author(s), 2024. Published by Cambridge University Press

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