Do Prior Residents Benefit from Energy Booms?

Luyi Han, John Winters and Michael Betz
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Luyi Han: Pennsylvania State University
Michael Betz: The Ohio State University

No 18466, IZA Discussion Papers from IZA Network @ LISER

Abstract: The 21st century fracking boom transformed American energy production, but new jobs were often filled by temporary in-migrants and long-distance commuters, possibly reducing economic benefits for prior residents. We use novel restricted-access data from the U.S. Census Bureau to assess fracking impacts on prior residents. We examine impacts on earnings and employment for persons born in non-metropolitan fracking counties. We utilize an event study design to estimate annual impacts during the fracking boom, drilling downturn, and subsequent periods. We find sizable impacts on average log earnings that peaked during the boom and partially persisted during and after the downturn. The fracking boom also increased the probability of being employed but the effect largely disappeared after fracking activity peaked. We also compare our main result for non-metropolitan natives to persons born in metropolitan counties and conduct several other extensions.

Keywords: fracking; local labor markets; resource boom; rural development (search for similar items in EconPapers)
JEL-codes: J3 Q4 R2 (search for similar items in EconPapers)
Date: 2026-03
New Economics Papers: this item is included in nep-lma and nep-uep
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Related works:
Working Paper: Do Prior Residents Benefit from Energy Booms? (2026)
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