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Local Labor Market Impacts of Energy Boom-Bust-Boom in Western Canada

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  • Marchand, Joseph

    ()
    (University of Alberta, Department of Economics)

Abstract

The direct and indirect impacts of energy sector boom and bust upon local labor markets are analyzed through the differential growth in employment and earnings between areas with and without energy resources. The estimated differentials attributed to each of these labor demand shocks show that the direct impacts upon the energy sector are large while the indirect impacts upon non-energy sectors are smaller. The significant results of the local job multipliers indicate that job creation in energy extraction also creates new jobs in local sectors during boom periods while displaying no significant job loss spillovers during a bust.

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Bibliographic Info

Paper provided by University of Alberta, Department of Economics in its series Working Papers with number 2010-17.

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Length: 33 pages
Date of creation: 01 Nov 2010
Date of revision: 01 Mar 2011
Handle: RePEc:ris:albaec:2010_017

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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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  1. Belasen, Ariel R. & Polachek, Solomon, 2007. "How Disasters Affect Local Labor Markets: The Effects of Hurricanes in Florida," IZA Discussion Papers 2976, Institute for the Study of Labor (IZA).
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Cited by:
  1. Marchand, Joseph, 2014. "The Distributional Impacts of an Energy Boom in Western Canada," CLSSRN working papers clsrn_admin-2014-28, Vancouver School of Economics, revised 16 Jun 2014.
  2. Libman, Alexander, 2013. "Natural resources and sub-national economic performance: Does sub-national democracy matter?," Energy Economics, Elsevier, vol. 37(C), pages 82-99.
  3. 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).
  4. 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.
  5. Humphreys, Brad & Marchand, Joseph, 2012. "New Casinos and Local Labor Markets: Evidence from Canada," Working Papers 2012-16, University of Alberta, Department of Economics, revised 01 Nov 2012.
  6. Deller, Steven C. & Schreiber, Andrew, 2012. "Frac Sand Mining and Community Economic Development," Staff Paper Series 565, University of Wisconsin, Agricultural and Applied Economics.
  7. 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.
  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. 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.

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