Natural Disasters and Perceived Returns to Education
2025
Doumbia, Macoura | Walque, Damien de
The occurrence of unexpected shocks, such as natural disasters, that destroy physical capital could affect the perception of returns to investment in human capital. This paper tests this hypothesis using a survey conducted in Mozambique while Cyclone Idai hit the country in March 2019. A difference-in-difference approach is used to compare the households interviewed before and after the cyclone occurrence, as well as the households that were directly affected by the cyclone, through destruction, injuries, and deaths. The results indicate that households affected by major shocks report higher perceived returns to completing primary education.
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