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Local labor market effects of nuclear power plants

Author

Listed:
  • Duha T. Altindag
  • Reem El Cheikh Taha
  • Jennifer U. Jones
  • R. Alan Seals

Abstract

Using a differences‐in‐differences strategy, we estimate the local economic effects of U.S. commercial nuclear power plants (NPPs). Our control group consists of locations where plant construction was planned but ultimately canceled. We find that NPP construction significantly increases local employment and wages, with effects concentrated in the construction and public utilities sectors. However, these gains dissipate once construction concludes and the plant becomes operational, as operational employment requirements are minimal. We find no significant spillover effects on neighboring towns, and commercial operations do not meaningfully impact broader labor market outcomes. Additionally, we find that NPP construction increases local government revenues and expenditures by approximately 10% to 15%, with funds primarily allocated to government administration and public works. These results suggest that while NPPs provide short‐term economic stimulus, their long‐term labor market and fiscal benefits may be limited.

Suggested Citation

  • Duha T. Altindag & Reem El Cheikh Taha & Jennifer U. Jones & R. Alan Seals, 2026. "Local labor market effects of nuclear power plants," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 45(2), March.
    • Handle: RePEc:wly:jpamgt:v:45:y:2026:i:2:n:e70029
    DOI: 10.1002/pam.70029
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    References listed on IDEAS

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