Spatial Diffusion of Economic Shocks in the Labor Market: Evidence from a Mining Boom and Bust

Gabriel Rodríguez-Puello and Jonna Rickardsson
Authors registered in the RePEc Author Service: Gabriel Rodríguez-Puello

No tzmf2, OSF Preprints from Center for Open Science

Abstract: Little is known about the spatial diffusion of the effects of economic shocks on the labor market. We use the mining boom resulting from the unexpected increase in the international prices of resources, geocoded microdata originating from administrative registers of individuals in Sweden, and dynamic difference-in-differences specifications to assess the spatial diffusion of economic shocks on labor market outcomes; we focus specifically on people to determine who is affected by the mining boom. We find consistent short- and long-lasting positive effects of the mining boom on individual earnings that spread as far as 83 km from the mining site. We also find a large gain in earnings and employment for residents directly employed in the mining sector, accompanied by significant spillover effects in other sectors. Furthermore, we find evidence of the migration of young, nonmarried, and highly educated individuals to the mining area, who obtain benefits from the mining boom in terms of earnings and employment; this is especially true for migrants who relocate to work directly in the mining sector.

Date: 2024-09-07
New Economics Papers: this item is included in nep-geo, nep-ipr, nep-lab and nep-ure
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Working Paper: Spatial Diffusion of Economic Shocks in the Labor Market: Evidence from a Mining Boom and Bust (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:tzmf2

DOI: 10.31219/osf.io/tzmf2

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