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  • Thumbnail for The impact of natural disasters on divorce rate : housing destruction as a channel
    The impact of natural disasters on divorce rate : housing destruction as a channel by Iwasaki, Yukiko

    With the increasing frequency, natural disasters are affecting more and more people these days. We investigate the relationship between natural disasters and divorce rate in the United States, specifically through the channel of housing destruction. We used panel data of 50 states for the years 2000 to 2009 from multiple sources. Becker’s marriage model suggests that destruction of houses through natural disasters is a great shock to a marital-specific capital and may be a trigger for a divorce. OLS regression with fixed effect reports a positive and significant relationship between divorce rate and per capita property damage through natural disasters, as hypothesized. The result was robust after the white’s correction and instrumenting medium income and home price.