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

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  • Yudai Higashi

    (Kobe University
    Japan Society for the Promotion of Science)

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.

Suggested Citation

  • Yudai Higashi, 2020. "Effects of region-specific shocks on labor market tightness and matching efficiency: evidence from the 2011 Tohoku Earthquake in Japan," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(1), pages 193-219, August.
    • Handle: RePEc:spr:anresc:v:65:y:2020:i:1:d:10.1007_s00168-020-00980-w
    DOI: 10.1007/s00168-020-00980-w
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    References listed on IDEAS

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    1. Regis Barnichon & Andrew Figura, 2015. "Labor Market Heterogeneity and the Aggregate Matching Function," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(4), pages 222-249, October.
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    6. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
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    9. Petrongolo, Barbara, 2001. "Reemployment Probabilities and Returns to Matching," Journal of Labor Economics, University of Chicago Press, vol. 19(3), pages 716-741, July.
    10. Aomar Ibourk & Bénédicte Maillard & Sergio Perelman & Henri Sneessens, 2004. "Aggregate Matching Efficiency: A Stochastic Production Frontier Approach, France 1990–1994," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 31(1), pages 1-25, March.
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    Cited by:

    1. Yudai Higashi, 2021. "Agglomeration Effects on Job Matching Efficiency: Evidence from Japan," Discussion Paper Series DP2021-03, Research Institute for Economics & Business Administration, Kobe University.
    2. Xiaodong Zhu & Zijing Jin & Shunsuke Managi & XiRong Xun, 2021. "How meteorological disasters affect the labor market? The moderating effect of government emergency response policy," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 107(3), pages 2625-2640, July.
    3. Okudaira, Hiroko, 2020. "Regulating the timing of job search: evidence from the labor market for new college graduates," Labour Economics, Elsevier, vol. 67(C).

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    More about this item

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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