The Long-term Impact of the 1995 Hanshin-Awaji Earthquake on Wage Distribution
AbstractThis paper explores the effects of the 1995 Hanshin-Awaji Earthquake on the wages of people in the area of the earthquake over the 17 years after its occurrence and identified which part of the wage distribution has been most affected by this event by comparing the wage distributions of disaster victims and non-victims. To do this, we used three decomposition methods, developed by (i) Oaxaca (1973) and Blinder (1973); (ii) DiNardo, Fortin, and Lemieux (1996) (gDFLh); and (iii) Machado and Mata (2005) and Melly (2006). Our findings are as follows. First, the Oaxaca and Blinder decomposition analysis shows that the negative impact of the earthquake still affects the mean wages of male workers. Second, the DFL decomposition analysis shows that middle-wage males would have earned more had the 1995 Hanshin-Awaji Earthquake not occurred. Finally, the Machado-Mata-Melly decomposition analysis shows that the earthquake had a large, adverse impact on the wages of middle-wage males, and that their wages have been reduced since the earthquake, by 5.0-8.6%. This result is similar to that from the DFL decomposition analysis. In the case of female workers, a long-term negative impact of the earthquake was also observed as the wages of high-wage females were reduced by 8.3-13.8%.
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Bibliographic InfoPaper provided by Institute of Social and Economic Research, Osaka University in its series ISER Discussion Paper with number 0897.
Date of creation: Apr 2014
Date of revision:
Other versions of this item:
- Ohtake, Fumio & Okuyama, Naoko & Sasaki, Masaru & Yasui, Kengo, 2014. "The Long-term Impact of the 1995 Hanshin–Awaji Earthquake on Wage Distribution," IZA Discussion Papers 8124, Institute for the Study of Labor (IZA).
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
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