The Effect of the Great East Japan Earthquake on the Evacuees' Unemployment and Earnings

Posted: 3 Apr 2017 Last revised: 7 Apr 2017

See all articles by Izumi Yamasaki

Izumi Yamasaki

Gakushuin University

Rubkwan Tharmmapornphilas

Independent; Ministry of Education, Thailand

Miho Takizawa

Toyo University

Tomohiko Inui

Gakushuin University

Date Written: April 1, 2017

Abstract

This study analyzes the impact of evacuation status on labor market outcomes such as employment and earnings following the Great East Japan Earthquake by using annual microdata from the 2012 Employment Status Survey in Japan. This is the first research that comprehensively examines the effect of evacuation status on labor market performance for evacuees of the Great East Japan Earthquake. The evacuation status categories are (1) evacuated and still away from home, (2) evacuated and moved to another place, (3) evacuated and already returned home, and (4) did not evacuate. We applied a probit model to estimate unemployment and an ordinary least squares regression to estimate earnings. To estimate unemployment and earnings, we also used propensity score matching to control for selection into evacuation status on observable characteristics. After controlling for selection into evacuation categories on observable characteristics, our findings show that those still away from home and those who moved tend to have the worst labor market performance in terms of probability of unemployment and annual earnings. The estimates suggest that we need a specific employment support for those who evacuated especially for those who are still away from home and those who moved to another place.

Keywords: Natural Disaster, Earthquake, Labor Market, Employment, Earnings

JEL Classification: H12, J21, J30

Suggested Citation

Yamasaki, Izumi and Tharmmapornphilas, Rubkwan and Takizawa, Miho and Inui, Tomohiko, The Effect of the Great East Japan Earthquake on the Evacuees' Unemployment and Earnings (April 1, 2017). Tokyo Center for Economic Research (TCER) Paper No. E-112. Available at SSRN: https://ssrn.com/abstract=2944522

Izumi Yamasaki (Contact Author)

Gakushuin University ( email )

1-5-1 Mejiro
Toshima-ku Tokyo 171-8588
United States

Rubkwan Tharmmapornphilas

Independent ( email )

No Address Available
United States

Ministry of Education, Thailand ( email )

139, Ratchadamnoen Nok Rd.
Dusit
Bangkok, 10300
Thailand

Miho Takizawa

Toyo University ( email )

5-28-20 Hakusan
Bunkyo-ku
Tokyo 112-8606, Tokyo 1128606
Japan

Tomohiko Inui

Gakushuin University ( email )

1-5-1 Mejiro
Toshima-ku Tokyo 171-8588
United States

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