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Do Prior Residents Benefit from Energy Booms?

Author

Listed:
  • Han, Luyi

    (Pennsylvania State University)

  • Winters, John

    (Iowa State University)

  • Betz, Michael

    (The Ohio State University)

Abstract

The 21st century fracking boom transformed American energy production, but new jobs were often filled by temporary in-migrants and long-distance commuters, possibly reducing economic benefits for prior residents. We use novel restricted-access data from the U.S. Census Bureau to assess fracking impacts on prior residents. We examine impacts on earnings and employment for persons born in non-metropolitan fracking counties. We utilize an event study design to estimate annual impacts during the fracking boom, drilling downturn, and subsequent periods. We find sizable impacts on average log earnings that peaked during the boom and partially persisted during and after the downturn. The fracking boom also increased the probability of being employed but the effect largely disappeared after fracking activity peaked. We also compare our main result for non-metropolitan natives to persons born in metropolitan counties and conduct several other extensions.

Suggested Citation

  • Han, Luyi & Winters, John & Betz, Michael, 2026. "Do Prior Residents Benefit from Energy Booms?," IZA Discussion Papers 18466, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp18466
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    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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