The income consequences of a managed retreat

Managed retreat is the relocation of households out of harm's way. After the 2011 Christchurch (New Zealand) earthquake, around 16000 people were thus relocated in a managed retreat program. We use administrative panel data (2004-2018) to identify the effects of this managed retreat on the relocated population. We find that, compared to the non-relocated residents, the relocated population experienced a significant initial decrease in their wages, and in their total income. Wages of those who were relocated were reduced by around $NZ 1900. Women faced greater absolute and relative decreases in wages. This finding has direct implications for the compensation packages that should be proposed for managed retreat programs.

Automated summary

Managed retreat programs result in significant initial decrease in wages and total income for relocated population, especially for women. This finding has direct implications for the compensation packages proposed for managed retreat programs.