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

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  • Joseph Marchand

    (University of Alberta, Department of Economics)

Abstract

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

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

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    Keywords

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    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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