Examining the Effect of Weather-Related Natural Disasters on Labor Wage Fluctuations in Transportation Construction
Publication: International Conference on Transportation and Development 2021
ABSTRACT
Weather-related hazards have a significant impact on labor cost fluctuations. These fluctuations lead to construction cost under- or over-estimation that impacts the overall success of transportation projects. However, the effect of weather-related natural disasters on the post-disaster labor wage fluctuations in the transportation infrastructure sector has not been studied. The objective of this research is to examine the spatiotemporal effect of natural disasters on the fluctuation of the labor weekly wages in the transportation construction sector. In this research, the required construction data of 254 counties in Texas (from 2014 to 2018) were collected to create the panel data models. Multiple spatial Durbin models (SDM) were developed to examine the effect of natural disasters on labor wage fluctuations in the transportation infrastructure sector. The results obtained from the SDM models combined with the multiple imputation method to address the missing data indicate that natural disasters significantly affect increasing weekly labor wage in the transportation infrastructure sector in counties affected by weather-related disasters. It is expected that this study helps cities, the Departments of Transportation (DOTs), Metropolitan Planning Organizations (MPOs), and infrastructure construction companies to have a better understanding of post-disaster construction cost fluctuations resulting from natural disasters.
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Published online: Jun 4, 2021
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