The Long-term Impact of the 1995 Hanshin-Awaji Earthquake on Wage Distribution

Ohtake, Fumio; Okuyama, Naoko; Sasaki, Masaru; Yasui, Kengo

The Long-term Impact of the 1995 Hanshin-Awaji Earthquake on Wage Distribution

Ohtake, Fumio; Okuyama, Naoko; Sasaki, Masaru et al.

Institute of Social and Economic Research Discussion Papers, 2014, 897, 1-39

Number of Access:524（2025-07-18 17:00 Counts）

Identifier to cite or link to this item: https://hdl.handle.net/11094/27700

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Title	The Long-term Impact of the 1995 Hanshin-Awaji Earthquake on Wage Distribution
Creator	NRID 1000050176913 1000050176913 ORCID 0000-0002-8825-7446 0000-0002-8825-7446 researchmap permalink ohtake ohtake Scopus Author ID 6701666319 6701666319 CreatorName Ohtake, Fumio
	NRID 1000080617556 1000080617556 CreatorName Okuyama, Naoko
	NRID 1000010340647 1000010340647 researchmap permalink masaru_sasaki masaru_sasaki Scopus Author ID 36026902400 36026902400 CreatorName Sasaki, Masaru
	NRID 1000080432459 1000080432459 CreatorName Yasui, Kengo
Subject	Natural disasters
	Wage distribution
	Wage decomposition
	Earthquake
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%.
Publisher	The Institute of Social and Economic Research, Osaka University
Source Title	Institute of Social and Economic Research Discussion Papers
Volume (Issue)	897
Page	1-39
Date of Issued	2014-03
Language	English
Handle URL	https://hdl.handle.net/11094/27700
Relation.references	URI https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2014/DP0897.pdf
Access Rights	metadata only access
Category	ディスカッション／ワーキング・ペーパー DP/WP
Category	Institute of Social and Economic Research Discussion Papers

Resource Type	technical report
Local Type	DP/WP
DCMI Type	Text
DCTERMS.bibliographicCitation	Institute of Social and Economic Research Discussion Papers. 2014, 897, p. 1-39
DC.title	The Long-term Impact of the 1995 Hanshin-Awaji Earthquake on Wage Distribution
DC.creator	Ohtake, Fumio
	Okuyama, Naoko
	Sasaki, Masaru
	Yasui, Kengo
DC.publisher	The Institute of Social and Economic Research, Osaka University
DC.language' scheme='DCTERMS.RFC1766	English
DC.type' scheme='DCTERMS.DCMIType	Text
DCTERMS.issued' scheme='DCTERMS.W3CDTF	2014-03
DC.relation' scheme='DCTERMS.URI	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2014/DP0897.pdf
DC.subject	Natural disasters
	Wage distribution
	Wage decomposition
	Earthquake
DCTERMS.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%.
DC.format	27700
citation_title	The Long-term Impact of the 1995 Hanshin-Awaji Earthquake on Wage Distribution
citation_author	Ohtake, Fumio
	Okuyama, Naoko
	Sasaki, Masaru
	Yasui, Kengo
citation_publisher	The Institute of Social and Economic Research, Osaka University
citation_language	English
citation_date	2014-03
citation_journal_title	Institute of Social and Economic Research Discussion Papers
citation_volume	897
citation_firstpage	1
citation_lastpage	39
citation_public_url	https://hdl.handle.net/11094/27700
citation_abstract_html_url	https://www.iser.osaka-u.ac.jp/static/resources/docs/dp/2014/DP0897.pdf

The Long-term Impact of the 1995 Hanshin-Awaji Earthquake on Wage Distribution

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