The long-term welfare impacts of natural disasters: Evidence from Ugandan landslides

Natural disasters forcibly displace millions of people a year. We study the economic impacts of displacement in Uganda, where landslides have forced an estimated 65,000 people from their homes. We combine administrative and survey data from affected and nearby households with a geological model of landslide risk to identify causal impacts. Landslides lead to substantial increases in long-term displacement and migration, and affected households are significantly worse off years after the event along several measures of welfare including economic and psychological health. Displacement outside the village and limited aid to cover damages appear to explain the negative welfare effects.