Migrants and boomtowns: micro evidence from the U.S. shale boom

Isha Rajbhandari (), Alessandra Faggian and Mark Partridge
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Isha Rajbhandari: University of Puget Sound

No 2020-11, Discussion Paper series in Regional Science & Economic Geography from Gran Sasso Science Institute, Social Sciences

Abstract: This paper analyzes the relationship between oil and gas development and in-migration of workers into boomtowns, taking into account their human capital. Using zero-inflated negative binomial estimation methodology, we find that shale development has differing scale and demand shock impacts on U.S. interregional migration flows. The results demonstrate the heterogeneity of migration responses to shale developments with a disproportionately higher positive effect for medium-high human capital workers with technical degrees or trainings common in the energy industry. Furthermore, labor demand shocks from oil and gas development have a modest association with migration flows, which is contrary to the assumption that natural resource boom is a considerable attraction for migrants. This study highlights the types of human capital gained by oil and gas development areas characterized as being rural and sparsely populated, which can have important implications for the long-run growth and economic resilience of the boomtowns.

Keywords: migration; shale gas boom; human capital (search for similar items in EconPapers)
JEL-codes: J23 J24 Q33 R11 R23 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2020-12, Revised 2020-12
New Economics Papers: this item is included in nep-ene, nep-geo, nep-mig and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ahy:wpaper:wp11

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