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Oil price dynamics and sectoral employment in the U.S

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  • Michieka, Nyakundi M.
  • Gearhart, Richard S.

Abstract

This paper examines the long- and short-run relationships between oil prices and employment in four sectors of the top oil producing counties in the U.S. In the long-run, findings from a Panel Auto Regressive Distributed Lag (ARDL) model illustrate causality running from oil prices to employment in every sector in the county panel. Findings from the state panel indicate the presence of long- and short-run causality from oil prices to mining and trade employment, while service employment is not affected. Natural resource and mining employment reverts fastest to equilibrium following shocks in oil prices.

Suggested Citation

  • Michieka, Nyakundi M. & Gearhart, Richard S., 2019. "Oil price dynamics and sectoral employment in the U.S," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 140-149.
    • Handle: RePEc:eee:ecanpo:v:62:y:2019:i:c:p:140-149
    DOI: 10.1016/j.eap.2019.02.001
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    References listed on IDEAS

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    Cited by:

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    3. Piotr Adamczyk, 2022. "Does the Volatility of Oil Price Affect the Structure of Employment? The Role of Exchange Rate Regime and Energy Import Dependency," Energies, MDPI, vol. 15(19), pages 1-10, September.
    4. Emrah Koçak & Umit Bulut & Angeliki N. Menegaki, 2022. "The resilience of green firms in the twirl of COVID‐19: Evidence from S&P500 Carbon Efficiency Index with a Fourier approach," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 32-45, January.
    5. Abdulmohsen Alfalih, Abdullah & Bel Hadj, Tarek, 2021. "Asymmetric effects of foreign direct investment on employment in an oil producing country: Do human capital, institutions and oil rents matter?," Resources Policy, Elsevier, vol. 70(C).
    6. Tarek Tawfik Yousef Alkhateeb & Haider Mahmood, 2020. "Oil Price and Energy Depletion Nexus in GCC Countries: Asymmetry Analyses," Energies, MDPI, vol. 13(12), pages 1-13, June.
    7. Zhang, Xi-Xi & Liu, Lu, 2020. "The time-varying causal relationship between oil price and unemployment: Evidence from the U.S. and China (EGY 118745)," Energy, Elsevier, vol. 212(C).

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    More about this item

    Keywords

    Oil prices; Sectoral employment; Panel ARDL;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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