Emigration and employment impacts of a disastrous earthquake: country of birth matters

Abstract

Two earthquakes in Christchurch, New Zealand, in 2010–11 caused 185 casualties, demolished much of the inner-city and caused significant job losses. We examine one form of adjustment to these outcomes: (international) emigration. Using a difference-in-difference approach, we analyse employment and emigration responses of Christchurch workers relative to matched workers elsewhere. We also examine heterogeneity in responses across subgroups defined by sex, age and country of birth. Significant emigration occurs following the second (more severe) earthquake mirroring job loss patterns. Effects differ by sex and age, and also by country of birth with the foreign-born much more likely to emigrate than the locally born.