Impact of oil booms and busts on human capital investment in the USA

Anil Kumar

Empirical Economics, 2017, vol. 52, issue 3, No 9, 1089-1114

Abstract: Abstract This paper uses Census IPUMS data from 1970 to 2000 and ACS data from 2010 to estimate the impact of oil booms and busts on wages and human capital formation in the USA. The paper finds that the oil boom between 1970 and 1980 was associated with a slower growth in the relative demand for skills in the oil and gas sector and regions where the sector had a large presence. The oil boom led to a sharp rise in real wages and a modest decline in college wage premium in oil-rich regions in the USA. Using a synthetic cohort approach, the paper finds that relative to cohorts who went to high school in the pre-oil boom period, the cohort reaching high school age during the oil boom was about 1–2% points less likely to have a college degree by 2000 and 2010.

Keywords: Energy boom and bust; Local labor markets; Wages and human capital (search for similar items in EconPapers)
JEL-codes: I21 J48 Q43 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (28)

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DOI: 10.1007/s00181-016-1192-3

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