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Labor demand shocks and earnings and employment differentials: Evidence from the U.S. shale oil & gas boom

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  • Upton, Gregory B.
  • Yu, Han

Abstract

In this paper, we show that labor market shocks that overwhelmingly directly impacted specific workers (male workers and workers with a high school education) in a specific industry (oil and gas sector) can have meaningful effects on employment and earnings differentials within sectors not directly impacted by the productivity shock. Empirical estimates suggest that college/high school earnings differentials decreased by 3.0% in the non-mining sectors, while male/female earnings differentials increased by 2.6% in the non-mining sectors. Results highlight the importance of considering differential effects of technology shocks by education and gender in studying earnings inequality.

Suggested Citation

  • Upton, Gregory B. & Yu, Han, 2021. "Labor demand shocks and earnings and employment differentials: Evidence from the U.S. shale oil & gas boom," Energy Economics, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:eneeco:v:102:y:2021:i:c:s0140988321003480
    DOI: 10.1016/j.eneco.2021.105462
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    More about this item

    Keywords

    Labor demand shock; Earnings differentials; Earnings inequality; Oil and natural gas; Shale boom;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

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