This thesis is comprised of three chapters. In the first paper we analyze how low skill rural-urban migration in Brazil from 1986 to 2000 led to an increase in the labor supply of high skill women living in urban areas. In our model we show how large inflows of low skill women migrants decrease the relative price of domestic services. The largest beneficiaries of this trend are high skill women, who respond to the decrease in the cost of domestic services by joining the labor force and working more hours. We use Census data from Brazil from 1991 and 2000 to test this hypothesis. Using weather shocks in rural areas, and historical patterns of migrations, we are able to build an exogenous migration shock by skill to cities. Using this as an instrument for the price of domestic services and local wages we find that a 10% decrease in the wage of domestic workers increases the labor participation of high skill women by 3%. In the second chapter we use data from Brazilian Census for 1980 to 2000 to estimate the elasticity of substitution between high and low skill workers. We instrument for the change in the ratio of high to low skill workers, with rural-urban migrants (driven by rainfall shocks in rural areas). Finally, in our simulations show that the increase in the labor supply of high skilled workers explains most of the decrease in the skill wage gap. Finally in chapter three, using survey data on fishermen and fishing villages in Aceh, Indonesia from 2005 and 2007, we examine the effect of the December 2004 tsunami and resulting massive aid effort on local public good provision, in particular on public labor inputs, but also public capital choices. Also analyzed are the roles of and changes in local social and political institutions and participation in political and social activities.