IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v41y2014icp9-15.html
   My bibliography  Save this article

Local job multipliers of mining

Author

Listed:
  • Fleming, David A.
  • Measham, Thomas G.

Abstract

The mining industry is capital intensive, and generally, direct labour employed is low compared to other industries. Considering this, when analysing local economic effects of mining it is important to observe local job multipliers that the industry generates in other sectors of the economy. In this study we use data from the recent Australian mining boom to estimate local job multipliers from mining, using econometric models and avoiding the rigidities and strong assumptions that input–output based models rely on. With census data and samples of Australian sub-state regions, our estimations show that local multipliers of mining are important for some local services sectors such as transport and rental and accommodation services, while local job spillovers into tradable goods sectors (manufacturing and agriculture) are statistically not significant. We also show how the magnitude of local multipliers varies nationwide from those of regions where operating mines are located.

Suggested Citation

  • Fleming, David A. & Measham, Thomas G., 2014. "Local job multipliers of mining," Resources Policy, Elsevier, vol. 41(C), pages 9-15.
    • Handle: RePEc:eee:jrpoli:v:41:y:2014:i:c:p:9-15
    DOI: 10.1016/j.resourpol.2014.02.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420714000233
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2014.02.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Enrico Moretti, 2010. "Local Multipliers," American Economic Review, American Economic Association, vol. 100(2), pages 373-377, May.
    2. Dan Black & Terra McKinnish & Seth Sanders, 2005. "The Economic Impact Of The Coal Boom And Bust," Economic Journal, Royal Economic Society, vol. 115(503), pages 449-476, April.
    3. Ejdemo, Thomas & Söderholm, Patrik, 2011. "Mining investment and regional development: A scenario-based assessment for Northern Sweden," Resources Policy, Elsevier, vol. 36(1), pages 14-21, March.
    4. Heinz Schandl & Franzi Poldy & Graham M. Turner & Thomas G. Measham & Daniel H. Walker & Nina Eisenmenger, 2008. "Australia's Resource Use Trajectories," Journal of Industrial Ecology, Yale University, vol. 12(5-6), pages 669-685, October.
    5. Robert G Gregory, 2012. "Living standards, terms of trade and foreign ownership: reflections on the Australian mining boom," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(2), pages 171-200, April.
    6. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
    7. Patrick E. Poppert & Henry W. Herzog Jr., 2003. "Force Reduction, Base Closure, and the Indirect Effects of Military Installations on Local Employment Growth," Journal of Regional Science, Wiley Blackwell, vol. 43(3), pages 459-482, August.
    8. Fleming, David A. & Measham, Thomas G., 2015. "Local economic impacts of an unconventional energy boom: the coal seam gas industry in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(1), January.
    9. Marchand, Joseph, 2012. "Local labor market impacts of energy boom-bust-boom in Western Canada," Journal of Urban Economics, Elsevier, vol. 71(1), pages 165-174.
    10. Thomas Gunton, 2003. "Natural Resources and Regional Development: An Assessment of Dependency and Comparative Advantage Paradigms," Economic Geography, Taylor & Francis Journals, vol. 79(1), pages 67-94, January.
    11. Aroca, Patricio, 2001. "Impacts and development in local economies based on mining: : the case of the Chilean II region," Resources Policy, Elsevier, vol. 27(2), pages 119-134, June.
    12. Maureen Kilkenny & Mark D. Partridge, 2009. "Export Sectors and Rural Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 910-929.
    13. Weber, Jeremy G., 2012. "The effects of a natural gas boom on employment and income in Colorado, Texas, and Wyoming," Energy Economics, Elsevier, vol. 34(5), pages 1580-1588.
    14. Fleming, David A. & Measham, Thomas G., 2013. "Disentangling the Natural Resources Curse: National and Regional Socioeconomic Impacts of Resource Windfalls," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150526, Agricultural and Applied Economics Association.
    15. Stephan J. Goetz & Anil Rupasingha, 2002. "High-Tech Firm Clustering: Implications for Rural Areas," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1229-1236.
    16. Rolfe, John, 2013. "Predicting the economic and demographic impacts of long distance commuting in the resources sector: A Surat basin case study," Resources Policy, Elsevier, vol. 38(4), pages 723-732.
    17. John Rolfe & Daniel Gregg & Galina Ivanova & Reuben Lawrence & David Rynne, 2011. "The Economic Contribution of the Resources Sector by Regional Areas in Queensland," Economic Analysis and Policy, Elsevier, vol. 41(1), pages 15-36, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David A. Fleming & Thomas G. Measham, 2015. "Local economic impacts of an unconventional energy boom: the coal seam gas industry in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(1), pages 78-94, January.
    2. Thomas Moritz & Thomas Ejdemo & Patrik Söderholm & Linda Wårell, 2017. "The local employment impacts of mining: an econometric analysis of job multipliers in northern Sweden," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 30(1), pages 53-65, April.
    3. Söderholm, Patrik & Svahn, Nanna, 2015. "Mining, regional development and benefit-sharing in developed countries," Resources Policy, Elsevier, vol. 45(C), pages 78-91.
    4. Lopes, Alef & Ruiz, Ricardo & Ribeiro, Rafael & Cantelmo, Weslley, 2023. "Linkages in the metal mining industry: Local job multipliers in Brazil," Resources Policy, Elsevier, vol. 82(C).
    5. Joseph Marchand & Jeremy Weber, 2018. "Local Labor Markets And Natural Resources: A Synthesis Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 469-490, April.
    6. Measham, Thomas & Fleming, David & Schandl, Heinz, 2015. "A Conceptual Model of the Socioeconomic Impacts of Unconventional Fossil Fuel Extraction," MPRA Paper 68523, University Library of Munich, Germany, revised 24 Nov 2015.
    7. David A. Fleming & Thomas G. Measham & Dusan Paredes, 2015. "Understanding the resource curse (or blessing) across national and regional scales: Theory, empirical challenges and an application," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(4), pages 624-639, October.
    8. Timothy W. Kelsey & Mark D. Partridge & Nancy E. White, 2016. "Unconventional Gas and Oil Development in the United States: Economic Experience and Policy Issues," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(2), pages 191-214.
    9. Calzada Olvera, Beatriz, 2024. "Is the Dutch disease well and alive? A cross-country assessment of mining spillovers on employment in the 2002–2014 period," Resources Policy, Elsevier, vol. 95(C).
    10. Susan Amiesa Fubara & Omowumi O. Iledare & Obindah Gershon & Jeremiah Ejemeyovwi, 2019. "Natural Resource Extraction and Economic Performance of the Niger Delta Region in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 9(4), pages 188-193.
    11. Guettabi, Mouhcine & James, Alexander, 2020. "Who benefits from an oil boom? Evidence from a unique Alaskan data set," Resource and Energy Economics, Elsevier, vol. 62(C).
    12. Fleming, David & Komarek, Timothy & Partridge, Mark & Measham, Thomas, 2015. "The Booming Socioeconomic Impacts of Shale: A Review of Findings and Methods in the Empirical Literature," MPRA Paper 68487, University Library of Munich, Germany.
    13. Grant Mark Nülle & Graham A. Davis, 2018. "Neither Dutch nor disease?—natural resource booms in theory and empirics," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 35-59, May.
    14. Watson, Brett & Reimer, Matthew N. & Guettabi, Mouhcine & Haynie, Alan, 2021. "Commercial fisheries & local economies," Journal of Environmental Economics and Management, Elsevier, vol. 106(C).
    15. Joseph Marchand, 2015. "The distributional impacts of an energy boom in Western Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(2), pages 714-735, May.
    16. Ryan A. Decker & Meagan McCollum & Gregory B. Upton Jr., 2024. "Boom Town Business Dynamics," Journal of Human Resources, University of Wisconsin Press, vol. 59(2), pages 627-651.
    17. Grant D. Jacobsen, 2019. "Who Wins In An Energy Boom? Evidence From Wage Rates And Housing," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 9-32, January.
    18. Betz, Michael R. & Partridge, Mark D. & Farren, Michael & Lobao, Linda, 2015. "Coal mining, economic development, and the natural resources curse," Energy Economics, Elsevier, vol. 50(C), pages 105-116.
    19. Tsvetkova, Alexandra & Partridge, Mark, 2017. "The shale revolution and entrepreneurship: An assessment of the relationship between energy sector expansion and small business entrepreneurship in US counties," Energy, Elsevier, vol. 141(C), pages 423-434.
    20. Unel, Bulent & Upton, Gregory B., 2023. "Oil & gas induced economic fluctuations and self-employment," Labour Economics, Elsevier, vol. 82(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:41:y:2014:i:c:p:9-15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.