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Male-biased Demand Shocks and Women’s Labor Force Participation: Evidence from Large Oil Field Discoveries

Author

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  • Stephan E. Maurer

    (Department of Economics, University of Konstanz and Centre for Economic Performance)

  • Andrei V. Potlogea

    (University of Edinburgh)

Abstract
Do male-biased demand shocks affect women’s labor force participation? To study this question, we examine large oil field discoveries in the US South from 1900-1940. We find that oil wealth has a zero net effect on female labor force participation due to two opposing channels. Oil discoveries increase demand for male labor in oil mining and manufacturing and consequentially raise male wages. This leads to an increased marriage rate of young women, which could have depressed female labor force participation. But at the same time, oil wealth also increases demand for women in services, which counterbalances the marriage effect and leaves women’s overall labor force participation rate unchanged. Our findings demonstrate that when the nontradable sector is open to women, male-biased de-mand shocks in the tradable sector need not reduce female labor force participation.

Suggested Citation

  • Stephan E. Maurer & Andrei V. Potlogea, 2017. "Male-biased Demand Shocks and Women’s Labor Force Participation: Evidence from Large Oil Field Discoveries," Working Paper Series of the Department of Economics, University of Konstanz 2017-08, Department of Economics, University of Konstanz.
    • Handle: RePEc:knz:dpteco:1708
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    5. Aguilar-Gomez, Sandra & Benshaul-Tolonen, Anja, 2023. "The evolution and persistence of women's roles: Evidence from the Gold Rush," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 364-381.
    6. Maurer, Stephan E., 2018. "Oil discoveries and education spending in the postbellum south," LSE Research Online Documents on Economics 88677, London School of Economics and Political Science, LSE Library.
    7. Brodeur, Abel & Haddad, Joanne, 2021. "Institutions, attitudes and LGBT: Evidence from the gold rush," Journal of Economic Behavior & Organization, Elsevier, vol. 187(C), pages 92-110.
    8. Maurer, Stephan E., 2019. "Oil discoveries and education provision in the Postbellum South," Economics of Education Review, Elsevier, vol. 73(C).
    9. McDonald, Lewis & Üngör, Murat, 2021. "New oil discoveries in Guyana since 2015: Resource curse or resource blessing," Resources Policy, Elsevier, vol. 74(C).
    10. Jubril Animashaun & Ada Wossink, 2020. "Patriarchy, Pandemics and the Gendered Resource Curse Thesis: Evidence from Petroleum Geology," Economics Discussion Paper Series 2006, Economics, The University of Manchester.
    11. Nguyen, Minh-Hoang, 2021. "Resource curse - Wikipedia," OSF Preprints 36uyb, Center for Open Science.
    12. Bilal Nabeel Falah & Marcelo Bérgolo & Arwa Abu Hashhash & Mohammad Hattawy & Iman Saadeh, 2019. "The Effect of Labor-Demand Shocks on Women’s Participation in the Labor Force: Evidence from Palestine," Working Papers PMMA 2019-08, PEP-PMMA.
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    More about this item

    Keywords

    oil; structural transformation; female labor force participation; gender pay gap;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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