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Using natural resource shocks to study economic behavior

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  • Dan A. Black

    (University of Chicago and NORC, USA, and IZA, Germany)

Abstract

In the context of growing worldwide inequality, it is important to know what happens when the demand for low-skilled workers changes. Because natural resource shocks are global in nature, but have highly localized impacts on labor prospects in resource extraction areas, they offer a unique opportunity to evaluate low-skilled men's behavior when faced with extreme variations in local labor market conditions. This situation can be utilized to evaluate a broad range of outcomes, from education and income, to marital and fertility status, to voting behavior.

Suggested Citation

  • Dan A. Black, 2019. "Using natural resource shocks to study economic behavior," IZA World of Labor, Institute of Labor Economics (IZA), pages 470-470, December.
    • Handle: RePEc:iza:izawol:journl:2019:n:470
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    References listed on IDEAS

    as
    1. Dan A. Black & Natalia Kolesnikova & Seth G. Sanders & Lowell J. Taylor, 2013. "Are Children “Normal”?," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 21-33, March.
    2. Daron Acemoglu & Amy Finkelstein & Matthew J. Notowidigdo, 2013. "Income and Health Spending: Evidence from Oil Price Shocks," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1079-1095, October.
    3. Guy Michaels, 2011. "The Long Term Consequences of Resource‐Based Specialisation," Economic Journal, Royal Economic Society, vol. 121(551), pages 31-57, March.
    4. Kerwin Kofi Charles & Yiming Li & Melvin Stephens, 2018. "Disability Benefit Take-Up and Local Labor Market Conditions," The Review of Economics and Statistics, MIT Press, vol. 100(3), pages 416-423, July.
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    7. Black, Dan A. & McKinnish, Terra G. & Sanders, Seth G., 2003. "Does the availability of high-wage jobs for low-skilled men affect welfare expenditures? Evidence from shocks to the steel and coal industries," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 1921-1942, September.
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    10. Dan Black & Kermit Daniel & Seth Sanders, 2002. "The Impact of Economic Conditions on Participation in Disability Programs: Evidence from the Coal Boom and Bust," American Economic Review, American Economic Association, vol. 92(1), pages 27-50, March.
    11. Carrington, William J, 1996. "The Alaskan Labor Market during the Pipeline Era," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 186-218, February.
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    13. Kerwin Kofi Charles & Melvin Stephens Jr., 2013. "Employment, Wages, and Voter Turnout," American Economic Journal: Applied Economics, American Economic Association, vol. 5(4), pages 111-143, October.
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    More about this item

    Keywords

    natural resource booms; labor market; low-skilled workers;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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