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Fueling the gender gap? Oil and women's labor and marriage market outcomes

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  • Maurer, Stephan E.
  • Potlogea, Andrei

Abstract

This paper analyzes the effect of resource-based economic specialization on women's labor market outcomes. Using information on the location and discovery of major oil fields in the Southern United States coupled with a county-level panel derived from US Census data for 1900-1940, we specifically test the hypothesis that the presence of mineral resources can induce changes in the sectoral composition of the local economy that are detrimental to women's labor market outcomes. We find evidence that the discovery of oil at the county level may constitute a substantial male biased demand shock to local labor markets, as it is associated with a higher gender pay gap. However, we find no evidence that oil wealth lowers female labor force participation or has any impact on local marriage and fertility patterns. While our results are consistent with oil shocks limiting female labor market opportunities in some sectors (mainly manufacturing), this effect tends to be compensated by the higher availability of service sector jobs for women who are therefore not driven out of the labor market.

Suggested Citation

  • Maurer, Stephan E. & Potlogea, Andrei, 2014. "Fueling the gender gap? Oil and women's labor and marriage market outcomes," LSE Research Online Documents on Economics 60351, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:60351
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    More about this item

    Keywords

    Oil; structural transformation; female labor force; participation; gender pay gap;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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