Effects of region-specific shocks on labor market tightness and matching efficiency: evidence from the 2011 Tohoku Earthquake in Japan

Research output: Contribution to journalArticlepeer-review

Abstract

This paper examines whether region-specific shocks alter regional labor market tightness and matching efficiencies. We adopt the Great East Japan Earthquake of March 2011, which caused a tsunami and nuclear disaster, as a region-specific shock. We find that an increase in labor market tightness, namely, labor shortage, occurs in the damaged regions after the disaster. Matching efficiencies in the damaged regions deteriorate, suggesting that the composition of unemployment and vacancies changes, leading to higher search frictions. Such nature has spatial spillover effects because of the widespread increase in demand for reconstruction and out-migration from the damaged regions.

Original languageEnglish
Pages (from-to)193-219
Number of pages27
JournalAnnals of Regional Science
Volume65
Issue number1
DOIs
Publication statusPublished - Aug 1 2020
Externally publishedYes

ASJC Scopus subject areas

  • Environmental Science(all)
  • Social Sciences(all)

Fingerprint Dive into the research topics of 'Effects of region-specific shocks on labor market tightness and matching efficiency: evidence from the 2011 Tohoku Earthquake in Japan'. Together they form a unique fingerprint.

Cite this