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Losing in a Boom: Long-term Consequences of a Local Economic Shock for Female Labour Market Outcomes

Author

Listed:
  • Bennett, Patrick

    (Dept. of Economics, Norwegian School of Economics and Business Administration)

  • Ravetti, Chiara

    (Polytechnic of Turin)

  • Wong, Po Yin

    (Research Department, Hong Kong Monetary Authority)

Abstract

This paper examines the long-term labour market consequences of a positive economic shock, the first discovery of oil and gas in Norway. Existing studies focus on the short-term and men, while less is known about women and the persistence of such shocks. Oil discovery increased male earnings (by 7%), while female earnings declined (by 10%). These shifts persist for two decades. Labour force participation and occupational change account for the earnings divergence. Within married couples, wives’ earnings declined, but household earnings increased. However, women’s income loss in oil regions is transitory: younger cohorts catch up to women in non-oil regions.

Suggested Citation

  • Bennett, Patrick & Ravetti, Chiara & Wong, Po Yin, 2020. "Losing in a Boom: Long-term Consequences of a Local Economic Shock for Female Labour Market Outcomes," Discussion Paper Series in Economics 3/2020, Norwegian School of Economics, Department of Economics.
    • Handle: RePEc:hhs:nhheco:2020_003
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    Cited by:

    1. Lin, Lu & He, Yuanhao, 2025. "Place-based policies and gendered human capital formation: Evidence and mechanisms," China Economic Review, Elsevier, vol. 92(C).
    2. Patrick Bennett & Kjell Salvanes, 2024. "Changing patterns of inequality in Norway: the roles of gender, education, immigration and unions," Fiscal Studies, John Wiley & Sons, vol. 45(2), pages 205-224, June.
    3. Ruohan Wu, 2023. "COVID‐19's impacts on business activities and female workers: Empirical evidence from global developing economies," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(1), pages 163-197, January.
    4. repec:gla:glaewp:2020-03 is not listed on IDEAS

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