Impact of Canterbury earthquakes on well‐being in New Zealand

TL;DR

The Canterbury earthquakes in New Zealand reduced life satisfaction and well-being, especially for vulnerable groups like Māori and younger people.

Contribution

This study uses a novel difference-in-difference-in-difference approach to analyze the micro-level effects of earthquakes on well-being.

Findings

Life satisfaction declined in earthquake-affected areas, showing sensitivity to catastrophic shocks.

Vulnerable groups like Māori experienced significant well-being declines, while younger and employed individuals showed resilience.

Economic well-being decreased for females and younger people in Christchurch, but increased for Māori and employed individuals.

Abstract

This study examines the impacts of earthquakes on individual subjective well‐being, using data from New Zealand's General Social Survey and a difference‐in‐difference‐in‐difference approach. By matching this with Earthquake Commission insurance claims, we could analyse the micro‐level effects of the 2010–11 Canterbury (New Zealand) earthquakes. Our findings reveal that life satisfaction consistently declined in affected areas, emphasising its sensitivity to catastrophic shocks. Narrowly‐defined areas exhibited negative impacts across all well‐being indicators. Vulnerable groups, including Māori, faced significant declines in life satisfaction, while younger people, migrants, and employed individuals demonstrated resilience. Economic well‐being decreased notably for females and younger persons in Christchurch, whereas Māori and employed individuals showed increases. Perceptions of safety weakened, particularly among females and the employed, but strengthened among sole individuals with dependent children and migrants. These results highlight the hidden adverse impacts of earthquakes and underscore the necessity for targeted interventions and support mechanisms tailored to vulnerable populations to mitigate disasters' effects on well‐being effectively.

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