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Oil price dynamics and sectoral employment in the U.S

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  • Michieka, Nyakundi M.
  • Gearhart, Richard S.

Abstract

This paper examines the long- and short-run relationships between oil prices and employment in four sectors of the top oil producing counties in the U.S. In the long-run, findings from a Panel Auto Regressive Distributed Lag (ARDL) model illustrate causality running from oil prices to employment in every sector in the county panel. Findings from the state panel indicate the presence of long- and short-run causality from oil prices to mining and trade employment, while service employment is not affected. Natural resource and mining employment reverts fastest to equilibrium following shocks in oil prices.

Suggested Citation

  • Michieka, Nyakundi M. & Gearhart, Richard S., 2019. "Oil price dynamics and sectoral employment in the U.S," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 140-149.
    • Handle: RePEc:eee:ecanpo:v:62:y:2019:i:c:p:140-149
    DOI: 10.1016/j.eap.2019.02.001
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    Cited by:

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    More about this item

    Keywords

    Oil prices; Sectoral employment; Panel ARDL;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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