Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/127104
Authors: 
Ohtake, Fumio
Okuyama, Naoko
Sasaki, Masaru
Yasui, Kengo
Year of Publication: 
2014
Series/Report no.: 
ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 897
Abstract: 
This 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) ("DFL"); 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%.
Subjects: 
Natural disasters
Wage distribution
Wage decomposition
Earthquake
JEL: 
J31
Q54
Document Type: 
Working Paper

Files in This Item:
File
Size
787.93 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.