Oil extraction and spillover effects into local labour market: Evidence from Ghana

Akwasi Ampofo, Terence Cheng () and Firmin Doko Tchatoka

School of Economics and Public Policy Working Papers from University of Adelaide, School of Economics and Public Policy

Abstract: This paper investigates the effects of oil extraction on local labour market outcomes. Using household-level data from the Ghana Living Standard Survey, we employ a difference-in-differences approach to show that oil extraction has negative spillover effects on employment but no significant effect on average income. However, the effects vary by migration status, gender and employment sector. Specifically, we observe that migrants, men and agricultural workers experienced significant income spillovers from the oil boom than locals, women and workers in other sectors. In addition, the oil boom resulted in a negative welfare impact as it widened inequality for individuals close to the extraction areas.

Keywords: Oil extraction; Spillover effects; Employment; Resource booms; Migration; DID estimation (search for similar items in EconPapers)
Date: 2021-08
New Economics Papers: this item is included in nep-dev, nep-ene, nep-isf and nep-ure
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https://media.adelaide.edu.au/economics/papers/doc/wp2021-03.pdf (application/pdf)

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Journal Article: Oil extraction and spillover effects into local labour market: Evidence from Ghana (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:adl:wpaper:2021-03

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