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The labor market effects of gas price fluctuations

Author

Listed:
  • Nicholas A Wright

    (Florida International University)

  • Alvin Harris

    (Bank of Jamaica)

Abstract

In this paper, we examine the impact of gas price fluctuations on individuals' labor market outcomes. Using the two-way fixed effects and instrumental variable approaches, we find evidence that an uptick in the retail gasoline price increases the likelihood of being employed and the number of hours worked each week. In addition, our results suggest that the effects are largest for young adults, men, unmarried individuals, and those who possess lower levels of educational attainment.

Suggested Citation

  • Nicholas A Wright & Alvin Harris, 2023. "The labor market effects of gas price fluctuations," Economics Bulletin, AccessEcon, vol. 43(1), pages 328-341.
    • Handle: RePEc:ebl:ecbull:eb-21-01144
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2023/Volume43/EB-23-V43-I1-P26.pdf
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    References listed on IDEAS

    as
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    4. West, Sarah E. & Williams III, Roberton C., 2007. "Optimal taxation and cross-price effects on labor supply: Estimates of the optimal gas tax," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 593-617, April.
    5. Nick, Sebastian & Thoenes, Stefan, 2014. "What drives natural gas prices? — A structural VAR approach," Energy Economics, Elsevier, vol. 45(C), pages 517-527.
    6. Alberini, Anna & Horvath, Marco & Vance, Colin, 2021. "Drive less, drive better, or both? Behavioral adjustments to fuel price changes in Germany," Ruhr Economic Papers 892, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Gasoline Price; Unemployment; Hours Worked; Labor Force;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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    Access and download statistics

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