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Is Shale Development Drilling Holes in the Human Capital Pipeline?

Author

Listed:
  • Dan S. Rickman

    (Oklahoma State University)

  • Hongbo Wang

    (Oklahoma State University)

  • John V. Winters

    (Oklahoma State University)

Abstract

Using the Synthetic Control Method (SCM) and a novel method for measuring changes in educational attainment we examine the link between educational attainment and shale oil and gas extraction for the states of Montana, North Dakota, and West Virginia. The three states examined are economically-small, relatively more rural, and have high levels of shale oil and gas reserves. They also are varied in that West Virginia is intensive in shale gas extraction, while the other two are intensive in shale oil extraction. We find significant reductions in high school and college attainment among all three states’ initial residents because of the shale booms.

Suggested Citation

  • Dan S. Rickman & Hongbo Wang & John V. Winters, 2015. "Is Shale Development Drilling Holes in the Human Capital Pipeline?," Economics Working Paper Series 1602, Oklahoma State University, Department of Economics and Legal Studies in Business.
  • Handle: RePEc:okl:wpaper:1602
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    References listed on IDEAS

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    More about this item

    Keywords

    shale development; energy boom; human capital; education; synthetic control method;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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