Informal Labor Markets After Disasters: Evidence From Rural and Urban Low‐Income Communities in Puerto Rico

ABSTRACT Objective Previous research has shown the impact of disasters on the formal labor market at the county and city levels, but there is little research evaluating informal labor markets after three consecutive natural events affecting marginalized communities. We selected Puerto Rico, a territory impacted by three disasters, for a case study. Method Official surveys do not usually obtain data from marginalized communities. We conducted a survey and found that the post‐disaster dynamics differ among marginalized communities. Findings Proximity to the center of the disaster, demography, and whether the setting is rural or urban can modify a community's post‐disaster labor market. In the case of the informal labor market, our findings contradict the official statistics and challenge the widespread stereotype that most adults in impoverished communities do not work when aid is received. Despite the aid received during the pandemic lockdown and the lower educational attainment in these communities than in the broader Puerto Rican population, both the case study communities exhibited relatively high labor attachment.