Human Capital Investment after the Storm.
FinanceÌýÌýÌýÌýGallagher, Emily A; Billings, Stephen B; Ricketts, Lowell R. Human Capital Investment after the Storm. Review of Financial Studies. Jul2023, Vol. 36 Issue 7, p2651-2684.ÌýÌýÌýÌýHow does household exposure to a natural disaster affect higher education investments? Using variation in flooding from Hurricane Harvey (2017), we find that college-aged adults from flooded blocks in Houston are 7% less likely than counterparts to have student loans after Harvey, with larger effects in areas with more potential first-generation students. We find a similar relative decline in enrollment at more exposed Texas universities and colleges and a shift toward majors with higher expected earnings. Our results highlight a decrease in the quantity but an increase in the intensity of investments in human capital after the storm.ÌýÌýÌýÌý
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