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Who Benefits from Local Oil and Gas Employment? Labor Market Composition in the Oil and Gas Industry in Texas

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  • Cai, Zhengyu

    (Southwestern University of Finance and Economics)

  • Maguire, Karen

    (Oklahoma State University)

  • Winters, John V.

    (Iowa State University)

Abstract

This paper examines local labor market outcomes from an oil and gas boom in Texas. We examine two main outcomes across gender, race, and ethnicity: the probability of employment in the oil and gas industry and the log wages of workers employed outside the oil and gas industry. We find that men and women both gain employment in the oil and gas industry during booms, but such gains are much larger for men and are largest for black and Hispanic men. We also find positive income spillovers for workers in other industries that are similar in magnitude across demographic groups.

Suggested Citation

  • Cai, Zhengyu & Maguire, Karen & Winters, John V., 2019. "Who Benefits from Local Oil and Gas Employment? Labor Market Composition in the Oil and Gas Industry in Texas," IZA Discussion Papers 12349, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12349
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    3. Fijorek, Kamil & Jurkowska, Aleksandra & Jonek-Kowalska, Izabela, 2021. "Financial contagion between the financial and the mining industries – Empirical evidence based on the symmetric and asymmetric CoVaR approach," Resources Policy, Elsevier, vol. 70(C).
    4. Winters, John V. & Cai, Zhengyu & Maguire, Karen & Sengupta, Shruti, 2019. "Do Workers Benefit from Resource Booms in Their Home State? Evidence from the Fracking Era," GLO Discussion Paper Series 400, Global Labor Organization (GLO).
    5. Subedi, Mukti Nath & Bharadwaj, Bishal & Rafiq, Shuddhasattwa, 2023. "Who benefits from the decentralised energy system (DES)? Evidence from Nepal’s micro-hydropower (MHP)," Energy Economics, Elsevier, vol. 120(C).
    6. John V. Winters & Zhengyu Cai & Karen Maguire & Shruti Sengupta, 2021. "Causal effects of the fracking boom on long‐term resident workers," Journal of Regional Science, Wiley Blackwell, vol. 61(2), pages 387-406, March.
    7. Amanda Chuan, 2022. "The impact of oil and gas job opportunities during youth on human capital," Southern Economic Journal, John Wiley & Sons, vol. 89(2), pages 406-439, October.
    8. Koomson, Isaac & Afoakwah, Clifford & Ampofo, Akwasi, 2022. "How does ethnic diversity affect energy poverty? Insights from South Africa," Energy Economics, Elsevier, vol. 111(C).
    9. Bharadwaj, Bishal & Subedi, Mukti Nath & Malakar, Yuwan & Ashworth, Peta, 2023. "Low-capacity decentralized electricity systems limit the adoption of electronic appliances in rural Nepal," Energy Policy, Elsevier, vol. 177(C).
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    More about this item

    Keywords

    oil; natural gas; employment; gender; race; energy;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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