Oil price fluctuations and employment in Kern County: A Vector Error Correction approach

Nyakundi Michieka () and Richard Gearhart

Energy Policy, 2015, vol. 87, issue C, 584-590

Abstract: Kern County is one of the country's largest oil producing regions, in which the oil industry employs a significant fraction of the labor force in the county. In this study, the short- and long-run effects of oil price fluctuations on employment in Kern County are investigated using a Vector Error Correction model (VECM). Empirical results over the period 1990:01 to 2015:03 suggest long-run causality running from both WTI and Brent oil prices to employment. No causality is detected in the short-run. Kern County should formulate appropriate policies, which take into account the fact that changes in oil prices have long-term effects on employment rather than short term.

Keywords: C32; E24; Q43; R11; Keywords:; Kern County; Employment; Brent; West Texas Intermediate (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:87:y:2015:i:c:p:584-590

DOI: 10.1016/j.enpol.2015.09.043

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