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The Effects of Shale Oil and Gas Endowments on Regional Labor Markets

Author

Listed:
  • Seunghun Chung

    (The Ohio State University, United States)

  • Oudom Hean

    (College of Business and Challey Institute, North Dakota State University, United States.)

Abstract

We analyze the effects of shale oil development on regional labor markets. By exploiting the exogenous geographic endowment of shale oil and gas, we find that shale endowments have differential impacts on workers in and out of the labor market. After introducing new shale technologies in 2006, shale oil and gas significantly increased the local share of high school graduates participating in the labor force. Yet, shale endowments decreased the percentage of nonworking college graduates who do not participate in the labor force. Our results suggest that shale oil and gas could increase the demand for high school graduates but create disamenities for college graduates who are not in the labor force.

Suggested Citation

  • Seunghun Chung & Oudom Hean, 2022. "The Effects of Shale Oil and Gas Endowments on Regional Labor Markets," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 425-431, September.
    • Handle: RePEc:eco:journ2:2022-05-48
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    References listed on IDEAS

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    More about this item

    Keywords

    Skill Aggregation; Shale Oil Development; Regional Growth;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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