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Natural resources, demand for skills, and schooling choices

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  • Bütikofer, Aline
  • Dalla-Zuanna, Antonio
  • Salvanes, Kjell G.

Abstract

This paper studies the consequences of the buildup of a new economic sector—the Norwegian petroleum industry—on investment in human capital. We assess both short- and long-term effects on educational choices by comparing individuals in oil-exposed regions with those in unexposed regions. We analyze how the effects and mechanisms change as the sector develops. Our results indicate a short-term increase in the high school dropout rate and a long-term decrease in academic high school and college enrolment, except for engineering degrees. Financial incentives are the most likely channels driving these effects on high school and university education.

Suggested Citation

  • Bütikofer, Aline & Dalla-Zuanna, Antonio & Salvanes, Kjell G., 2025. "Natural resources, demand for skills, and schooling choices," Journal of Environmental Economics and Management, Elsevier, vol. 133(C).
    • Handle: RePEc:eee:jeeman:v:133:y:2025:i:c:s0095069625000968
    DOI: 10.1016/j.jeem.2025.103212
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