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The effects of supply chain disruptions caused by the Great East Japan Earthquake on workers

Ayako Kondo ()

Japan and the World Economy, 2018, vol. 47, issue C, 40-50

Abstract: The Great East Japan Earthquake affected not only local workers employed by establishments that were directly damaged, but also those of their trading partners through supply chain disruptions. I estimate the effect of such indirect shocks to workers on their job separation, inter-industry mobility, geographical relocation, and employment status in the following years. I find that such shocks increased job separation in the study period. This increased job separation did not increase inter-industry mobility, but rather induced relocation to other prefectures. The effect on employment status was mixed: although the self-reported indicator of being affected by the earthquake is significantly correlated with negative outcomes such as high unemployment, the proxy for the production decline at the prefecture-industry level is uncorrelated with employment status. This result implies that people who faced a negative employment shock may have attributed it to the exogenous event, which may cause substantial bias in the self-reported data on the effect of disasters.

Keywords: Great East Japan Earthquake; Supply chain; Employment (search for similar items in EconPapers)
Date: 2018
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Working Paper: The Effects of Supply Chain Disruptions Caused by the Great East Japan Earthquake on Workers (2017) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:eee:japwor:v:47:y:2018:i:c:p:40-50

DOI: 10.1016/j.japwor.2018.03.007

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