Disaster relief and regional employment: the case of the Great East Japan Earthquake

Tomomi Miyazaki

Applied Economics Letters, 2025, vol. 32, issue 1, 78-86

Abstract: This paper examines the causal effects of disaster relief on employment using municipality level data. To do this, we focus on the disaster relief for the Great East Japan Earthquake. Our empirical results show that while simple difference-in-differences estimation does not necessarily show statistically significant effects, the estimation results using some matching techniques are robust. Our results suggest that natural disaster relief could contribute to employment recovery in afflicted areas, contrary to some theoretical assumptions that fiscal expansion depresses private-sector employment.

Date: 2025
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DOI: 10.1080/13504851.2023.2257025

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