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Local Labor Markets and Natural Resources: A Synthesis of the Literature

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  • Marchand, Joseph

    (University of Alberta, Department of Economics)

  • Weber, Jeremy

    (University of Pittsburgh)

Abstract

A primary way that natural resources affect a locality is through the demand for labor, with greater extraction requiring more workers. Shifts in labor demand can be measured through changes in employment and earnings, the main labor market outcomes, or through changes in the population and income, more generally. These changes may spillover into the non-resource economy, leading to greater overall effects or possibly crowd out; be spread unequally across the population, thereby altering the distribution of income and the poverty rate; or influence educational attainment, as people choose between additional schooling and work. In this review, the literature linking natural resources to local labor markets is synthesized by organizing existing studies according to their resource measurement and the outcomes that they consider. This synthesis provides an accessible guide to a literature that has boomed in recent years. It also identifies promising avenues for future research and lays a foundation to further generalize the evidence through an eventual meta-analysis.

Suggested Citation

  • Marchand, Joseph & Weber, Jeremy, 2016. "Local Labor Markets and Natural Resources: A Synthesis of the Literature," Working Papers 2016-10, University of Alberta, Department of Economics, revised 24 Jan 2017.
    • Handle: RePEc:ris:albaec:2016_010
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    File URL: https://sites.ualberta.ca/~econwps/2016/wp2016-10.pdf
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    More about this item

    Keywords

    local labor markets; natural resources; resource booms;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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