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Local Labor Market Impacts of Energy Boom-Bust-Boom in Western Canada


  • Marchand, Joseph

    () (University of Alberta, Department of Economics)


The impacts of energy price boom and bust are analyzed through the differential growth in employment and earnings between local labor markets with and without energy resources in Western Canada. The estimated differentials attributed to the boom-induced labor demand shocks show significant direct and indirect impacts on the earnings and employment within the energy extraction and other non-energy local sectors respectively. The local job multipliers indicate that job creation within the energy extraction sector leads to modest job creation within the non-energy local sectors during boom periods. For every ten energy extraction jobs created during a boom period, approximately three construction jobs, two retail jobs, and four and a half service jobs are created.

Suggested Citation

  • Marchand, Joseph, 2010. "Local Labor Market Impacts of Energy Boom-Bust-Boom in Western Canada," Working Papers 2010-17, University of Alberta, Department of Economics, revised 01 May 2011.
  • Handle: RePEc:ris:albaec:2010_017

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    References listed on IDEAS

    1. Enrico Moretti, 2010. "Local Multipliers," American Economic Review, American Economic Association, vol. 100(2), pages 373-377, May.
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    11. Neumark, David & Kolko, Jed, 2010. "Do enterprise zones create jobs? Evidence from California's enterprise zone program," Journal of Urban Economics, Elsevier, vol. 68(1), pages 1-19, July.
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    More about this item


    boom and bust; energy; job multipliers; labor demand shocks; local labor markets;

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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