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Local labor market impacts of energy boom-bust-boom in Western Canada

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  • Marchand, Joseph

Abstract

The impacts of energy price boom and bust are analyzed through the differential growth in employment and earnings between local labor markets with and without energy resources in Western Canada. The estimated differentials attributed to the boom-induced labor demand shocks show significant direct and indirect impacts on the earnings and employment within the energy extraction and other non-energy local sectors respectively. The local job multipliers indicate that job creation within the energy extraction sector leads to modest job creation within the non-energy local sectors during boom periods. For every ten energy extraction jobs created during a boom period, approximately three construction jobs, two retail jobs, and four and a half service jobs are created.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 71 (2012)
Issue (Month): 1 ()
Pages: 165-174

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Handle: RePEc:eee:juecon:v:71:y:2012:i:1:p:165-174

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Web page: http://www.elsevier.com/locate/inca/622905

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Keywords: Boom and bust; Energy; Job multipliers; Labor demand shocks; Local labor markets;

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References

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Cited by:
  1. Lucija Muehlenbachs & Elisheba Spiller & Christopher Timmins, 2012. "Shale Gas Development and Property Values: Differences across Drinking Water Sources," NBER Working Papers 18390, National Bureau of Economic Research, Inc.
  2. Marchand, Joseph, 2013. "The Distributional Impacts of an Energy Boom in Western Canada," Working Papers 2013-13, University of Alberta, Department of Economics, revised 30 May 2014.
  3. Weber, Jeremy G., 2012. "The effects of a natural gas boom on employment and income in Colorado, Texas, and Wyoming," Energy Economics, Elsevier, vol. 34(5), pages 1580-1588.
  4. Libman, Alexander, 2013. "Natural resources and sub-national economic performance: Does sub-national democracy matter?," Energy Economics, Elsevier, vol. 37(C), pages 82-99.
  5. Stephan E. Maurer & Andrei V. Potlogea, 2014. "Fueling the Gender Gap? Oil and Women's Labor and Marriage Market Outcomes," CEP Discussion Papers dp1280, Centre for Economic Performance, LSE.
  6. Humphreys, Brad R. & Marchand, Joseph, 2013. "New casinos and local labor markets: Evidence from Canada," Labour Economics, Elsevier, vol. 24(C), pages 151-160.
  7. Jan Peter aus dem Moore & Alexandra Spitz-Oener, 2012. "Bye Bye, G.I. - The Impact of the U.S. Military Drawdown on Local German Labor Markets," SFB 649 Discussion Papers SFB649DP2012-024, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  8. Howie, Peter & Atakhanova, Zauresh, 2014. "Resource boom and inequality: Kazakhstan as a case study," Resources Policy, Elsevier, vol. 39(C), pages 71-79.
  9. Giorgio Di Pietro & Toni Mora, 2011. "The effect of the l’Aquila earthquake on labour market outcomes," Working Papers 2011/41, Institut d'Economia de Barcelona (IEB).
  10. Fleming, David A. & Measham, Thomas G., 2013. "Disentangling the Natural Resources Curse: National and Regional Socioeconomic Impacts of Resource Windfalls," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150526, Agricultural and Applied Economics Association.
  11. Thiemo Fetzer, 2014. "Fracking Growth," CEP Discussion Papers dp1278, Centre for Economic Performance, LSE.
  12. Deller, Steven C. & Schreiber, Andrew, 2012. "Frac Sand Mining and Community Economic Development," Staff Paper Series 565, University of Wisconsin, Agricultural and Applied Economics.

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