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How the 1906 San Francisco Earthquake Shaped Economic Activity in the American West

Philipp Ager, Katherine Eriksson, Casper Worm Hansen, Lars Lønstrup

NBER Working Paper No. 25727
Issued in April 2019
NBER Program(s):Development of the American Economy, Labor Studies

This paper examines the long-run effects of the 1906 San Francisco Earthquake on the spatial distribution of economic activity in the American West. Using variation in the potential damage intensity of the earthquake, we show that more severely affected cities experienced lower population increases relative to less affected cities until the late 20th century. This long lasting effect is largely a result of individuals’ high geographical mobility at that time. Less affected areas became more attractive migration destinations in the immediate aftermath of the earthquake, which permanently changed the spatial distribution of economic activity in the American West.

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Document Object Identifier (DOI): 10.3386/w25727

 
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