The Mariana Environmental Disaster and its Labor Market Effects

2024/05/24 by Hugo Sant’Anna, Sant'Anna, Hugo
Social Sciences · #Climate Change, Adaptation, Migration #Disaster Management and Resilience #FOS: Economics and business #General Economics (econ.GN)

paper · pdf · doi:10.48550/arxiv.2405.15862

openalex publication_date 2024/05/24 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

This paper examines the labor market impacts of the 2015 Mariana Dam disaster in Brazil. It contrasts two theoretical models: an urban spatial equilibrium model and a factor of production model, with diverging perspectives on environmental influences on labor outcomes. Utilizing rich national administrative and spatial data, the study reveals that the unusual environmental alteration, with minimal human capital loss, primarily affected outcomes via the factor of production channel. Nevertheless, spatial equilibrium dynamics are discernible within certain market segments. This research contributes to the growing literature on environmental changes and its economic consequences.

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