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Male‐biased Demand Shocks and Women's Labour Force Participation: Evidence from Large Oil Field Discoveries

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  • Stephan E. Maurer
  • Andrei V. Potlogea

Abstract

Do male‐biased labour demand shocks affect women's labour market outcomes? To study this question, we examine large oil field discoveries in the southern USA from 1900 to 1940. We find that oil wealth has an overall positive effect on female labour force participation that is driven by single women. While oil discoveries increase demand for male labour and raise male wages, they do not drive women out of the tradable goods sector or the labour force. Our findings suggest that the absence of any crowding out effects of oil wealth can be explained by compensating forces such as demand effects within the tradable sector, or by income effects that lead to growth in the non‐tradable sector.

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  • Stephan E. Maurer & Andrei V. Potlogea, 2021. "Male‐biased Demand Shocks and Women's Labour Force Participation: Evidence from Large Oil Field Discoveries," Economica, London School of Economics and Political Science, vol. 88(349), pages 167-188, January.
    • Handle: RePEc:bla:econom:v:88:y:2021:i:349:p:167-188
    DOI: 10.1111/ecca.12341
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    5. Stephan E. Maurer, 2018. "Oil discoveries and education spending in the Postbellum South," CEP Discussion Papers dp1526, Centre for Economic Performance, LSE.
    6. Joslin, Knut-Eric & Nordvik, Frode Martin, 2021. "Does religion curtail women during booms? Evidence from resource discoveries," Journal of Economic Behavior & Organization, Elsevier, vol. 187(C), pages 205-224.
    7. Nguyen, Minh-Hoang, 2021. "Resource curse - Wikipedia," OSF Preprints 36uyb, Center for Open Science.
    8. Bilal Nabeel Falah & Marcelo Bérgolo & Arwa Abu Hashhash & Mohammad Hattawy & Iman Saadeh, 2019. "The Effect of Labor-Demand Shocks on Women’s Participation in the Labor Force: Evidence from Palestine," Working Papers PMMA 2019-08, PEP-PMMA.
    9. Anja Tolonen, 2019. "Endogenous Gender Roles: Evidence from Africa’s Gold Mining Industry," OxCarre Working Papers 209, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
    10. Aguilar-Gomez, Sandra & Benshaul-Tolonen, Anja, 2023. "The evolution and persistence of women's roles: Evidence from the Gold Rush," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 364-381.
    11. Jubril Animashaun & Ada Wossink, 2020. "Patriarchy, Pandemics and the Gendered Resource Curse Thesis: Evidence from Petroleum Geology," Economics Discussion Paper Series 2006, Economics, The University of Manchester.
    12. Au Yong Lyn, Audrey, 2020. "Male employment and female intra-household decision-making: a Mexican gold mining case study," Munich Reprints in Economics 75733, University of Munich, Department of Economics.
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    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J1 - Labor and Demographic Economics - - Demographic Economics

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