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

Akwasi Ampofo, Terence C. Cheng and Firmin Doko Tchatoka

Energy Economics, 2022, vol. 106, issue C

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)
JEL-codes: O13 O15 Q32 Q33 R11 R23 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:106:y:2022:i:c:s014098832100551x

DOI: 10.1016/j.eneco.2021.105699

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