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Local Labor Market Restructuring in the Shale Boom

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  • Weinstein, Amanda L.

Abstract

Innovations in hydraulic fracturing have led to oil and gas booms in various shale plays across the U.S. The economic impact of shale development has been estimated previously with varying results. The results are often used to justify supporting the industry. Thus, a precise estimate of the economic impact to communities is important. A county level analysis of the lower 48 states from 2001-2011 provides an estimate of the local economic impact as well as the labor market restructuring occurring due to the recent shale boom and can provide insight into the mechanisms behind the “natural resource curse.” Results suggest that the im-pact of shale development on employment is modest, with the impact on earnings growth ap-proximately double that of the impact on employment, though the growth effects seem to wane over time. The employment multiplier from oil and gas development is estimated to be approximately 1.3.

Suggested Citation

  • Weinstein, Amanda L., 2014. "Local Labor Market Restructuring in the Shale Boom," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 44(1).
  • Handle: RePEc:ags:jrapmc:243965
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    File URL: http://ageconsearch.umn.edu/record/243965/files/v44_n1_a6_weinstein.pdf
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    Citations

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    Cited by:

    1. Joseph Marchand & Jeremy Weber, 2018. "Local Labor Markets And Natural Resources: A Synthesis Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 469-490, April.
    2. Agerton, Mark & Hartley, Peter R. & Medlock, Kenneth B. & Temzelides, Ted, 2017. "Employment impacts of upstream oil and gas investment in the United States," Energy Economics, Elsevier, vol. 62(C), pages 171-180.
    3. Munasib, Abdul & Rickman, Dan S., 2015. "Regional economic impacts of the shale gas and tight oil boom: A synthetic control analysis," Regional Science and Urban Economics, Elsevier, vol. 50(C), pages 1-17.
    4. Cosgrove, Brendan M. & LaFave, Daniel R. & Dissanayake, Sahan T. M. & Donihue, Michael R., 2015. "The Economic Impact of Shale Gas Development: A Natural Experiment along the New York / Pennsylvania Border," Agricultural and Resource Economics Review, Cambridge University Press, vol. 44(02), pages 20-39, August.
    5. Timothy W. Kelsey & Mark D. Partridge & Nancy E. White, 2016. "Unconventional Gas and Oil Development in the United States: Economic Experience and Policy Issues," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(2), pages 191-214.
    6. Rickman, Dan S. & Wang, Hongbo & Winters, John V., 2017. "Is shale development drilling holes in the human capital pipeline?," Energy Economics, Elsevier, vol. 62(C), pages 283-290.
    7. repec:eee:energy:v:141:y:2017:i:c:p:423-434 is not listed on IDEAS
    8. repec:eee:ecolec:v:138:y:2017:i:c:p:178-185 is not listed on IDEAS
    9. Tsvetkova, Alexandra & Partridge, Mark, 2017. "The shale revolution and entrepreneurship: An assessment of the relationship between energy sector expansion and small business entrepreneurship in US counties," Energy, Elsevier, vol. 141(C), pages 423-434.
    10. repec:eee:resene:v:55:y:2019:i:c:p:1-23 is not listed on IDEAS
    11. repec:eee:jrpoli:v:55:y:2018:i:c:p:196-209 is not listed on IDEAS
    12. repec:pal:easeco:v:43:y:2017:i:4:d:10.1057_eej.2015.47 is not listed on IDEAS
    13. repec:eee:resene:v:49:y:2017:i:c:p:62-85 is not listed on IDEAS
    14. Michieka, Nyakundi M. & Gearhart, Richard, 2015. "Oil price fluctuations and employment in Kern County: A Vector Error Correction approach," Energy Policy, Elsevier, vol. 87(C), pages 584-590.
    15. repec:bla:afrdev:v:29:y:2017:i:s1:p:42-55 is not listed on IDEAS
    16. Weinstein, Amanda & Partridge, Mark & Tsvetkova, Alexandra, 2017. "Follow the Money: How Does the Income Flow After an Energy Boom," MPRA Paper 77336, University Library of Munich, Germany.
    17. Komarek, Timothy M., 2016. "Labor market dynamics and the unconventional natural gas boom: Evidence from the Marcellus region," Resource and Energy Economics, Elsevier, vol. 45(C), pages 1-17.
    18. repec:spr:minecn:v:31:y:2018:i:1:d:10.1007_s13563-018-0153-z is not listed on IDEAS
    19. Cai, Zhengyu & Maguire, Karen & Winters, John V., 2018. "Who Benefits from Local Oil and Gas Employment? Labor Market Composition in the Oil and Gas Industry in Texas," GLO Discussion Paper Series 246, Global Labor Organization (GLO).
    20. Tsvetkova, Alexandra & Partridge, Mark D., 2016. "Economics of modern energy boomtowns: Do oil and gas shocks differ from shocks in the rest of the economy?," Energy Economics, Elsevier, vol. 59(C), pages 81-95.
    21. Rickman, Dan S. & Wang, Hongbo, 2018. "What Goes Up Must Come Down? A Case Study of the Recent Oil and Gas Employment Cycle in Louisiana, North Dakota and Oklahoma," MPRA Paper 87252, University Library of Munich, Germany.
    22. Miljkovic, Dragan & Ripplinger, David, 2016. "Labor market impacts of U.S. tight oil development: The case of the Bakken," Energy Economics, Elsevier, vol. 60(C), pages 306-312.

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