Who Bears the Cost of Staying Urban? Skill-Differentiated Migration Responses to Natural Disasters
Abstract
This paper examines how natural disasters shape migration responses of high- and low-skilled workers in the United States. Using within–commuting zone migration data linked with disaster-driven monetary losses, I find that a one percent increase in four-year cumulative disaster damage growth raises out-migration of low-skilled workers from metropolitan areas by 1.44 percentage points, while high-skilled inflows rise by 0.63 points. I also consider a broader measure of risk, defined as the likelihood of being surrounded by more damaged neighborhoods while living in a safer area. Under this measure, low-skilled workers relocate to rural areas over four- to five-year horizons.
Overall, this paper shows that natural disasters exacerbate skill-based spatial sorting by reinforcing high-skilled concentration in urban areas with higher education quality while displacing low-skilled workers from those same locations, thereby restricting access to educational opportunities and accelerating longer-run inequality across skill groups.