Effects of the Bam earthquake on employment: A shift-share analysis

Abstract

Disasters have potential short-term and long-term impacts on employment and employment structures in affected regions. While measuring the full economic impact of a disaster requires sophisticated econometrics and mathematical simulations, conventional regional economic models such as shift-share analysis can be used to assess some of these effects. This paper applies shift-share analysis to understand potential long-term impacts of disasters on employment using the December 2003 Bam earthquake as a case study. The results provide further evidence that disasters could have significant long-term effects on the employment structure of affected regions. © Overseas Development Institute, 2012.