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Oil extraction and spillover effects into local labour market: Evidence from Ghana

Author

Listed:
  • Akwasi Ampofo

    (University of Adelaide College)

  • Terence C Cheng

    (School of Public Health, Harvard University)

  • Firmin Doko Tchatoka

    (School of Economics & Public Policy, The University of Adelaide)

Abstract
This paper investigates the effects of oil extraction on local labour market outcomes. Using household-level data from the Ghana Living Standard Survey, we employ a difference-in-differences approach to show that oil extraction has negative spillover effects on employment but no significant effect on average income. However, the effects vary by migration status, gender and employment sector. Specifically, we observe that migrants, men and agricultural workers experienced significant income spillovers from the oil boom than locals, women and workers in other sectors. In addition, the oil boom resulted in a negative welfare impact as it widened inequality for individuals close to the extraction areas.

Suggested Citation

  • Akwasi Ampofo & Terence C Cheng & Firmin Doko Tchatoka, 2021. "Oil extraction and spillover effects into local labour market: Evidence from Ghana," School of Economics and Public Policy Working Papers 2021-03 Classification-O1, University of Adelaide, School of Economics and Public Policy.
    • Handle: RePEc:adl:wpaper:2021-03
    as

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    File URL: https://media.adelaide.edu.au/economics/papers/doc/wp2021-03.pdf
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    More about this item

    Keywords

    Oil extraction; Spillover effects; Employment; Resource booms; Migration; DID estimation;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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