IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/246.html
   My bibliography  Save this paper

Who Benefits from Local Oil and Gas Employment? Labor Market Composition in the Oil and Gas Industry in Texas

Author

Listed:
  • Cai, Zhengyu
  • Maguire, Karen
  • Winters, John V.

Abstract

This paper examines local labor market outcomes from an oil and gas boom. We examine two main outcomes across gender, race, and ethnicity: the probability of employment in the oil and gas industry and the log wages of workers employed outside the oil and gas industry. We find that men and women both gain employment in the oil and gas industry during booms, but such gains are much larger for men and are largest for black and Hispanic men. We also find positive income spillovers for workers in other industries that are similar in magnitude across demographic groups.

Suggested Citation

  • Cai, Zhengyu & Maguire, Karen & Winters, John V., 2018. "Who Benefits from Local Oil and Gas Employment? Labor Market Composition in the Oil and Gas Industry in Texas," GLO Discussion Paper Series 246, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:246
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/182070/1/GLO-DP-0246.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Munasib, Abdul & Rickman, Dan S., 2015. "Regional economic impacts of the shale gas and tight oil boom: A synthetic control analysis," Regional Science and Urban Economics, Elsevier, vol. 50(C), pages 1-17.
    2. Weinstein, Amanda L. & Partridge, Mark D. & Tsvetkova, Alexandra, 2018. "Follow the money: Aggregate, sectoral and spatial effects of an energy boom on local earnings," Resources Policy, Elsevier, vol. 55(C), pages 196-209.
    3. Carneiro, Pedro & Heckman, James J & Masterov, Dimitriy V, 2005. "Labor Market Discrimination and Racial Differences in Premarket Factors," Journal of Law and Economics, University of Chicago Press, vol. 48(1), pages 1-39, April.
    4. Maniloff, Peter & Mastromonaco, Ralph, 2017. "The local employment impacts of fracking: A national study," Resource and Energy Economics, Elsevier, vol. 49(C), pages 62-85.
    5. Michieka, Nyakundi M. & Gearhart, Richard, 2015. "Oil price fluctuations and employment in Kern County: A Vector Error Correction approach," Energy Policy, Elsevier, vol. 87(C), pages 584-590.
    6. Smith, Tony E. & Zenou, Yves, 2003. "Spatial mismatch, search effort, and urban spatial structure," Journal of Urban Economics, Elsevier, vol. 54(1), pages 129-156, July.
    7. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
    8. William Greene, 2004. "The behaviour of the maximum likelihood estimator of limited dependent variable models in the presence of fixed effects," Econometrics Journal, Royal Economic Society, vol. 7(1), pages 98-119, June.
    9. Olof Åslund & John Östh & Yves Zenou, 2010. "How important is access to jobs? Old question--improved answer," Journal of Economic Geography, Oxford University Press, vol. 10(3), pages 389-422, May.
    10. Agerton, Mark & Hartley, Peter R. & Medlock, Kenneth B. & Temzelides, Ted, 2017. "Employment impacts of upstream oil and gas investment in the United States," Energy Economics, Elsevier, vol. 62(C), pages 171-180.
    11. Timothy W. Kelsey & Mark D. Partridge & Nancy E. White, 2016. "Unconventional Gas and Oil Development in the United States: Economic Experience and Policy Issues," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(2), pages 191-214.
    12. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-579, November.
    13. Donald Houston, 2005. "Employability, Skills Mismatch and Spatial Mismatch in Metropolitan Labour Markets," Urban Studies, Urban Studies Journal Limited, vol. 42(2), pages 221-243, February.
    14. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, vol. 94(4), pages 991-1013, September.
    15. Alessandra Fogli & Laura Veldkamp, 2011. "Nature or Nurture? Learning and the Geography of Female Labor Force Participation," Econometrica, Econometric Society, vol. 79(4), pages 1103-1138, July.
    16. Topel, Robert H, 1994. "Regional Labor Markets and the Determinants of Wage Inequality," American Economic Review, American Economic Association, vol. 84(2), pages 17-22, May.
    17. Weinstein, Amanda L., 2014. "Local Labor Market Restructuring in the Shale Boom," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 44(1).
    18. Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2017. "International trade and local labor markets: Do foreign and domestic shocks affect regions differently?," Journal of Economic Geography, Oxford University Press, vol. 17(2), pages 375-409.
    19. Ronald McQuaid, 2006. "Job search success and employability in local labor markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(2), pages 407-421, June.
    20. Kleibergen, Frank & Paap, Richard, 2006. "Generalized reduced rank tests using the singular value decomposition," Journal of Econometrics, Elsevier, vol. 133(1), pages 97-126, July.
    21. Tsvetkova, Alexandra & Partridge, Mark D., 2016. "Economics of modern energy boomtowns: Do oil and gas shocks differ from shocks in the rest of the economy?," Energy Economics, Elsevier, vol. 59(C), pages 81-95.
    22. Giorgio Topa, 2001. "Social Interactions, Local Spillovers and Unemployment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(2), pages 261-295.
    23. Coen-Pirani, Daniele & León, Alexis & Lugauer, Steven, 2010. "The effect of household appliances on female labor force participation: Evidence from microdata," Labour Economics, Elsevier, vol. 17(3), pages 503-513, June.
    24. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2008. "Trends in U.S. Wage Inequality: Revising the Revisionists," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 300-323, May.
    25. Jorge M. Aguero & Mindy S. Marks, 2008. "Motherhood and Female Labor Force Participation: Evidence from Infertility Shocks," American Economic Review, American Economic Association, vol. 98(2), pages 500-504, May.
    26. Zenou, Yves & Boccard, Nicolas, 2000. "Racial Discrimination and Redlining in Cities," Journal of Urban Economics, Elsevier, vol. 48(2), pages 260-285, September.
    27. Harry J. Holzer, 1991. "The Spatial Mismatch Hypothesis: What Has the Evidence Shown?," Urban Studies, Urban Studies Journal Limited, vol. 28(1), pages 105-122, February.
    28. Partridge, Mark D. & Rickman, Dan & Olfert, M. Rose & Tan, Ying, 2013. "International Trade and Local Labor Markets: Are Foreign and Domestic Shocks Created Differently?," MPRA Paper 53407, University Library of Munich, Germany.
    29. Ihlanfeldt, Keith R & Sjoquist, David L, 1990. "Job Accessibility and Racial Differences in Youth Employment Rates," American Economic Review, American Economic Association, vol. 80(1), pages 267-276, March.
    30. Timothy J. Bartik, 1991. "Who Benefits from State and Local Economic Development Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number wbsle.
    31. Muriel Niederle & Lise Vesterlund, 2007. "Do Women Shy Away From Competition? Do Men Compete Too Much?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 1067-1101.
    32. Stephen W. Pruitt & Leonard L. Nethercutt, 2002. "The Texaco Racial Discrimination Case and Shareholder Wealth," Journal of Labor Research, Transaction Publishers, vol. 23(4), pages 685-693, October.
    33. Kerwin Kofi Charles & Yiming Li & Melvin Stephens, 2018. "Disability Benefit Take-Up and Local Labor Market Conditions," The Review of Economics and Statistics, MIT Press, vol. 100(3), pages 416-423, July.
    34. Qingfang Wang, 2008. "Race/Ethnicity, Gender and Job Earnings across Metropolitan Areas in the United States: A Multilevel Analysis," Urban Studies, Urban Studies Journal Limited, vol. 45(4), pages 825-843, April.
    35. Paredes, Dusan & Komarek, Timothy & Loveridge, Scott, 2015. "Income and employment effects of shale gas extraction windfalls: Evidence from the Marcellus region," Energy Economics, Elsevier, vol. 47(C), pages 112-120.
    36. Terra G. Mckinnish, 2004. "Occupation, Sex-Integration, and Divorce," American Economic Review, American Economic Association, vol. 94(2), pages 322-325, May.
    37. Compton, Janice & Pollak, Robert A., 2014. "Family proximity, childcare, and women’s labor force attachment," Journal of Urban Economics, Elsevier, vol. 79(C), pages 72-90.
    38. Weber, Jeremy G., 2012. "The effects of a natural gas boom on employment and income in Colorado, Texas, and Wyoming," Energy Economics, Elsevier, vol. 34(5), pages 1580-1588.
    39. Mark D. Partridge & Dan S. Rickman, 2006. "The Geography of American Poverty: Is There a Need for Place-Based Policies?," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number gap.
    40. Joni Hersch, 2008. "Profiling the New Immigrant Worker: The Effects of Skin Color and Height," Journal of Labor Economics, University of Chicago Press, vol. 26(2), pages 345-386, April.
    41. Andrews,Donald W. K. & Stock,James H. (ed.), 2005. "Identification and Inference for Econometric Models," Cambridge Books, Cambridge University Press, number 9780521844413, September.
    42. Daniel Kreisman & Marcos A. Rangel, 2015. "On the Blurring of the Color Line: Wages and Employment for Black Males of Different Skin Tones," The Review of Economics and Statistics, MIT Press, vol. 97(1), pages 1-13, March.
    43. Dan Black & Amelia Haviland & Seth Sanders & Lowell Taylor, 2006. "Why Do Minority Men Earn Less? A Study of Wage Differentials among the Highly Educated," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 300-313, May.
    44. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-895, October.
    45. James Feyrer & Erin T. Mansur & Bruce Sacerdote, 2017. "Geographic Dispersion of Economic Shocks: Evidence from the Fracking Revolution," American Economic Review, American Economic Association, vol. 107(4), pages 1313-1334, April.
    46. Lee, Jim, 2015. "The regional economic impact of oil and gas extraction in Texas," Energy Policy, Elsevier, vol. 87(C), pages 60-71.
    47. Casey B. Mulligan & Yona Rubinstein, 2008. "Selection, Investment, and Women's Relative Wages Over Time," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(3), pages 1061-1110.
    48. Gerrit Mueller & Erik Plug, 2006. "Estimating the Effect of Personality on Male and Female Earnings," ILR Review, Cornell University, ILR School, vol. 60(1), pages 3-22, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cai, Zhengyu & Yu, Chin-Hsien & Zhu, Chunhui, 2021. "Government-led urbanization and natural gas demand in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 147(C).
    2. Winikoff, Justin B. & Maguire, Karen, 2024. "The Role of Commercial Energy Payments in Agricultural Producer Income," Economic Information Bulletin 342468, United States Department of Agriculture, Economic Research Service.
    3. Seung Jin Cho & Brent Kreider & John V. Winters, 2023. "Resource booms, state economic conditions, and child food security," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1734-1752, September.
    4. Fijorek, Kamil & Jurkowska, Aleksandra & Jonek-Kowalska, Izabela, 2021. "Financial contagion between the financial and the mining industries – Empirical evidence based on the symmetric and asymmetric CoVaR approach," Resources Policy, Elsevier, vol. 70(C).
    5. Winters, John V. & Cai, Zhengyu & Maguire, Karen & Sengupta, Shruti, 2019. "Do Workers Benefit from Resource Booms in Their Home State? Evidence from the Fracking Era," GLO Discussion Paper Series 400, Global Labor Organization (GLO).
    6. Amanda Chuan, 2022. "The impact of oil and gas job opportunities during youth on human capital," Southern Economic Journal, John Wiley & Sons, vol. 89(2), pages 406-439, October.
    7. Koomson, Isaac & Afoakwah, Clifford & Ampofo, Akwasi, 2022. "How does ethnic diversity affect energy poverty? Insights from South Africa," Energy Economics, Elsevier, vol. 111(C).
    8. Elder, John & Payne, James E., 2023. "Racial and ethnic disparities in unemployment and oil price uncertainty," Energy Economics, Elsevier, vol. 119(C).
    9. Subedi, Mukti Nath & Bharadwaj, Bishal & Rafiq, Shuddhasattwa, 2023. "Who benefits from the decentralised energy system (DES)? Evidence from Nepal’s micro-hydropower (MHP)," Energy Economics, Elsevier, vol. 120(C).
    10. John V. Winters & Zhengyu Cai & Karen Maguire & Shruti Sengupta, 2021. "Causal effects of the fracking boom on long‐term resident workers," Journal of Regional Science, Wiley Blackwell, vol. 61(2), pages 387-406, March.
    11. Elder, John & Payne, James E., 2024. "Oil price uncertainty shocks and the gender gap in U.S. unemployment," Energy Economics, Elsevier, vol. 131(C).
    12. Bharadwaj, Bishal & Subedi, Mukti Nath & Malakar, Yuwan & Ashworth, Peta, 2023. "Low-capacity decentralized electricity systems limit the adoption of electronic appliances in rural Nepal," Energy Policy, Elsevier, vol. 177(C).
    13. Alina Kovalenko, 2023. "Natural Resource Booms, Human Capital, and Earnings: Evidence from Linked Education and Employment Records," American Economic Journal: Applied Economics, American Economic Association, vol. 15(2), pages 184-217, April.
    14. Onur Sapci, 2022. "The Impact of Shale Energy on Population Dynamics, Labor Migration, and Employment," Energies, MDPI, vol. 15(22), pages 1-17, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cai, Zhengyu & Maguire, Karen & Winters, John V., 2019. "Who benefits from local oil and gas employment? Labor market composition in the oil and gas industry in Texas and the rest of the United States," Energy Economics, Elsevier, vol. 84(C).
    2. Watson, Brett & Reimer, Matthew N. & Guettabi, Mouhcine & Haynie, Alan, 2021. "Commercial fisheries & local economies," Journal of Environmental Economics and Management, Elsevier, vol. 106(C).
    3. Mark Partridge & Shawn M. Rohlin & Amanda L. Weinstein, 0. "Firm formation and survival in the shale boom," Small Business Economics, Springer, vol. 0, pages 1-22.
    4. Mark Partridge & Shawn M. Rohlin & Amanda L. Weinstein, 2020. "Firm formation and survival in the shale boom," Small Business Economics, Springer, vol. 55(4), pages 975-996, December.
    5. Rajbhandari, Isha & Faggian, Alessandra & Partridge, Mark D., 2022. "Oil and gas boomtowns and occupations: What types of jobs are created?," Energy Economics, Elsevier, vol. 115(C).
    6. 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.
    7. Rickman, Dan & Wang, Hongbo, 2020. "What goes up must come down? The recent economic cycles of the four most oil and gas dominated states in the US," Energy Economics, Elsevier, vol. 86(C).
    8. Keeler, Zachary T. & Stephens, Heather M., 2020. "Valuing shale gas development in resource-dependent communities," Resources Policy, Elsevier, vol. 69(C).
    9. Rickman, Dan S. & Wang, Hongbo, 2018. "What Goes Up Must Come Down? A Case Study of the Recent Oil and Gas Employment Cycle in Louisiana, North Dakota and Oklahoma," MPRA Paper 87252, University Library of Munich, Germany.
    10. Guettabi, Mouhcine & James, Alexander, 2020. "Who benefits from an oil boom? Evidence from a unique Alaskan data set," Resource and Energy Economics, Elsevier, vol. 62(C).
    11. 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.
    12. Weinstein, Amanda & Partridge, Mark & Tsvetkova, Alexandra, 2017. "Follow the Money: How Does the Income Flow After an Energy Boom," MPRA Paper 77336, University Library of Munich, Germany.
    13. Judith K. Hellerstein & David Neumark, 2011. "Employment in Black Urban Labor Markets: Problems and Solutions," NBER Working Papers 16986, National Bureau of Economic Research, Inc.
    14. Wang, Haoying, 2020. "The economic impact of oil and gas development in the Permian Basin: Local and spillover effects," Resources Policy, Elsevier, vol. 66(C).
    15. Carpenter, Craig Wesley & Anderson, David & Dudensing, Rebekka, 2019. "The Texas Drilling Boom and Local Human Capital Investment," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 51(2), pages 199-218, May.
    16. Susan Amiesa Fubara & Omowumi O. Iledare & Obindah Gershon & Jeremiah Ejemeyovwi, 2019. "Natural Resource Extraction and Economic Performance of the Niger Delta Region in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 188-193.
    17. Weinstein, Amanda L. & Partridge, Mark D. & Tsvetkova, Alexandra, 2018. "Follow the money: Aggregate, sectoral and spatial effects of an energy boom on local earnings," Resources Policy, Elsevier, vol. 55(C), pages 196-209.
    18. Onur Sapci, 2022. "The Impact of Shale Energy on Population Dynamics, Labor Migration, and Employment," Energies, MDPI, vol. 15(22), pages 1-17, November.
    19. Jason P. Brown, 2021. "Response of Consumer Debt to Income Shocks: The Case of Energy Booms and Busts," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 53(7), pages 1629-1675, October.
    20. Bünstorf, Guido & Krabel, Stefan, 2014. "Gender and Immigration: Double Negative Effects in the Labor Market Outcomes of University Graduates in Germany?," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100290, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    Oil; Natural Gas; Employment; Gender; Race; Energy;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:glodps:246. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/glabode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.