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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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    File URL: https://business.okstate.edu/site-files/docs/ecls-working-papers/OKSWPS1602.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Joseph Marchand & Jeremy Weber, 2018. "Local Labor Markets And Natural Resources: A Synthesis Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 469-490, April.
    2. Marchand, Joseph & Weber, Jeremy, 2017. "The Local Effects of the Texas Shale Boom on Schools, Students, and Teachers," Working Papers 2017-12, University of Alberta, Department of Economics, revised 26 Jan 2018.
    3. repec:eee:energy:v:141:y:2017:i:c:p:423-434 is not listed on IDEAS
    4. Tsvetkova, Alexandra & Partridge, Mark, 2017. "The shale revolution and entrepreneurship: An assessment of the relationship between energy sector expansion and small business entrepreneurship in US counties," Energy, Elsevier, vol. 141(C), pages 423-434.
    5. Rickman, Dan S. & Wang, Hongbo, 2018. "Two tales of two U.S. states: Regional fiscal austerity and economic performance," Regional Science and Urban Economics, Elsevier, vol. 68(C), pages 46-55.
    6. Stephan E. Maurer, 2018. "Oil Discoveries and Education Spending in the Postbellum South," CEP Discussion Papers dp1526, Centre for Economic Performance, LSE.
    7. Rickman, Dan S. & Wang, Hongbo & Winters, John V., 2017. "Is shale development drilling holes in the human capital pipeline?," Energy Economics, Elsevier, vol. 62(C), pages 283-290.
    8. Johanna Richter & Alliana Salanguit & Alexander James, 2017. "The (Uneven) Spatial Distribution of the Bakken Oil Boom," Working Papers 2017-03, University of Alaska Anchorage, Department of Economics.

    More about this item

    Keywords

    shale development; energy boom; human capital; education; synthetic control method;

    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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