Natural Disasters, Financial Shocks, and Human Capital

• 成果类型: Article; Early Access
• 署名作者: Cornaggia, Jess; Cornaggia, Kimberly J.; Xia, Han
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; University of Texas System; University of Texas Dallas
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2022.02977
• 发表日期: 2025
• 关键词: FINANCIAL SHOCKS; human capital; student loans; default risk; household finance; natural disasters

摘要

We examine effects on productivity, employment, and debt outcomes among college students whose parents reside in areas that experience financial shocks caused by natural disasters. After shocks, treated students exhibit poorer academic performance. To boost the impaired grade point average, these students sacrifice educational content by withdrawing from more courses and enrolling in fewer STEM (Science, Technology, Engineering, Mathematics) courses. Effects are stronger for middle class students likely relying on family income to pay for college. Students mostly mitigate financial shocks with additional part-time employment. Ultimately, disrupted students are 10% more likely to default on student loans. Overall, these results shed light on the effects of financial stress on the intensive margin of human capital formation.