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Causal effects of the fracking boom on long‐term resident workers

Author

Listed:
  • John V. Winters
  • Zhengyu Cai
  • Karen Maguire
  • Shruti Sengupta
Abstract
Horizontal drilling innovations revolutionized the U.S. oil and gas industry and facilitated a boom in production in the mid‐2000s in regions with shale and tight‐sands reservoirs. This paper examines the effects of the boom on individual employment and earnings within boom states. We account for endogenous migration decisions by using a novel instrument for oil and gas production in workers' state of residence. We find statistically significant and economically meaningful positive effects of the oil and gas boom for long‐term resident workers, those who were born in and reside in their home state.

Suggested Citation

  • John V. Winters & Zhengyu Cai & Karen Maguire & Shruti Sengupta, 2021. "Causal effects of the fracking boom on long‐term resident workers," Journal of Regional Science, Wiley Blackwell, vol. 61(2), pages 387-406, March.
    • Handle: RePEc:bla:jregsc:v:61:y:2021:i:2:p:387-406
    DOI: 10.1111/jors.12513
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    Cited by:

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    2. Cai, Zhengyu & Yu, Chin-Hsien & Zhu, Chunhui, 2021. "Government-led urbanization and natural gas demand in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 147(C).
    3. Winikoff, Justin B. & Maguire, Karen, 2024. "The Role of Commercial Energy Payments in Agricultural Producer Income," Economic Information Bulletin 342468, United States Department of Agriculture, Economic Research Service.
    4. Seung Jin Cho & Brent Kreider & John V. Winters, 2023. "Resource booms, state economic conditions, and child food security," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(3), pages 1734-1752, September.
    5. Onur Sapci, 2022. "The Impact of Shale Energy on Population Dynamics, Labor Migration, and Employment," Energies, MDPI, vol. 15(22), pages 1-17, November.

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