Essays in Applied Economics

This thesis explores the impacts of terrorism, foreign direct investment (FDI), and extreme weather events on labor markets and local development in both developed and developing countries. In Chapter 2, I examine the effects of terrorism on local labor markets within the tourism sector by exploiting the terrorist attack against tourists that occurred in Egypt in 2015. The event study analysis reveals that the affected governorates experienced a temporary reduction in both overall employment and formal employment in tourism following the attack. Chapter 3 investigates the role of foreign direct investment in driving structural transformation in local labor markets across 24 African countries, finding that FDI contributes to job creation and shifts in the labor force out of agriculture and from low- to higher-skilled occupations. In Chapter 4, we examine the local effects of extreme weather events. In particular, we study the economic consequences of severe floods on Italian municipalities and we find that affected municipalities experience a permanent reduction in population, GDP, employment, and an increase in firm exits following the event. In summary, this thesis contributes to understanding labor market dynamics and local development in relation to terrorism, foreign direct investment, and extreme weather events. The findings highlight the importance of these factors in driving local economic development and shaping labor markets in different contexts.