Do adversarial environmental conditions create social cohesion? We provide new answers to this question by exploiting spatial and temporal variation in exposure to earthquakes across Chile. Using a variety of methods and controlling for a number of socio-economic variables, we find that exposure to earthquakes has a positive effect on several indicators of social cohesion. Social cohesion increases after a big earthquake and slowly erodes in periods where environmental conditions are less adverse. Our results contribute to the current debate on whether and how environmental conditions shape formal and informal institutions.

CERGE EI a joint workplace of Charles University Prague and the Economics Institute of the Czech Academy of Sciences Politických vězňů 7 111 21 Prague Czech Republic

Departamento de Economía Universidad de Santiago de Chile Alameda 3363 Santiago Chile

Department of Economics University of Essex Wivenhoe Park Colchester CO43SQ United Kingdom

Dpto de Economía Universidade da Coruña Campus de A Coruña 15071 A Coruña Spain

Dpto Fundamentos Análisis Económico 1 and Bridge Universidad del País Vasco Euskal Herriko Unibersitatea Av Lehendakari Aguirre 83 48015 Bilbao Spain

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