Do Workers Benefit from Resource Booms in Their Home State? Evidence from the Fracking Era

John Winters, Zhengyu Cai, Karen Maguire and Shruti Sengupta ()
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Shruti Sengupta: Oklahoma State University

No 12619, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Fracking innovations revolutionized the United States oil and gas industry and facilitated a boom in energy production in states with oil and gas resources. This paper examines effects of oil and gas booms within a state on individual employment and earnings. To account for endogenous migration decisions, we instrument for oil and gas production in workers' state of residence via the predicted percent of oil and gas employment in their state of birth. We find statistically significant and economically meaningful positive effects. The bulk of the effects accrue to workers employed outside the oil and gas industry indicating sizable spillovers.

Keywords: resource boom; regional economic development; employment; wages; income (search for similar items in EconPapers)
JEL-codes: J20 J30 Q40 R10 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2019-09
New Economics Papers: this item is included in nep-lma and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - published as 'Causal Effects of the Fracking Boom on Long-Term Resident Workers' in: Journal of Region Science, 2021, 61 (2), 387 - 406

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Working Paper: Do Workers Benefit from Resource Booms in Their Home State? Evidence from the Fracking Era (2019)
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