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The local employment impacts of fracking: A national study

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  • Maniloff, Peter
  • Mastromonaco, Ralph

Abstract

This paper quantifies the local economic impacts of hydraulic fracturing. We match extremely detailed oil and natural gas well data to county-level aggregate and sectoral employment data. Controlling for time-varying unobserved determinants of job growth, we find approximately 550,000 local jobs attributable to the shale boom. While this is substantial, it is smaller than previous studies. We also show that the effects are heterogenous across sectors. Impacts are concentrated in extractive industries, in local non-tradable and service sectors, and in areas with the largest increase in drilling activity.

Suggested Citation

  • Maniloff, Peter & Mastromonaco, Ralph, 2017. "The local employment impacts of fracking: A national study," Resource and Energy Economics, Elsevier, vol. 49(C), pages 62-85.
  • Handle: RePEc:eee:resene:v:49:y:2017:i:c:p:62-85
    DOI: 10.1016/j.reseneeco.2017.04.005
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    References listed on IDEAS

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    1. repec:eee:resene:v:54:y:2018:i:c:p:37-52 is not listed on IDEAS
    2. repec:spr:anresc:v:61:y:2018:i:1:d:10.1007_s00168-018-0861-x is not listed on IDEAS
    3. repec:spr:minecn:v:31:y:2018:i:1:d:10.1007_s13563-018-0153-z is not listed on IDEAS
    4. Hess, Joshua H. & Manning, Dale T. & Iverson, Terry & Cutler, Harvey, 2019. "Uncertainty, learning, and local opposition to hydraulic fracturing," Resource and Energy Economics, Elsevier, vol. 55(C), pages 102-123.
    5. Alexander James & Brock Smith, 2018. "The Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution: Comment," Working Papers 2018-02, University of Alaska Anchorage, Department of Economics.
    6. 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).
    7. 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.

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