Stylized Fact Analysis of Cash-for-Work Programs in the Disaster Reconstruction Process

We analyzed whether the stylized facts about job creation programs called Cash-For-Work (CFW) also hold in the case of Ofunato City in the reconstruction process that occurred after the Great East Japan Earthquake and Tsunami. We developed a social simulation model to analyze the effect of CFW programs for the city, which is reconstructing from the disaster. We reproduced the labor market dynamics at the time and analyzed whether stylized facts empirically supported in developing countries are also held in Ofunato City. Additionally, we analyzed the relationship between the level of CFW salaries and the number of employees of local companies as well as the relationship between the skill set acquired by workers in the CFW programs and the number of successful career changes to local companies. The obtained findings deepen our understanding of the stylized facts about CFW design and serve as useful considerations when developing a CFW program in similar cities.