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Can the IRA and CHIPS Act Reduce Labor Earnings Inequality? Lessons from the US Shale Boom

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We study how the US shale boom decreased labor earnings inequality by increasing demand for low-skill labor in small labor markets. The similarities in the concentrated geographic distribution of investments and the labor needed to build capacity between the US shale boom and the manufacturing construction influx that has followed the passage of the IRA and CHIPS and Science Acts raise the possibility that these bills could also impact labor earnings inequality in a similar way.

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  • Victor Hernandez Martinez & Geena Panzitta, 2024. "Can the IRA and CHIPS Act Reduce Labor Earnings Inequality? Lessons from the US Shale Boom," Economic Commentary, Federal Reserve Bank of Cleveland, vol. 2024(13), pages 1-7, August.
    • Handle: RePEc:fip:fedcec:98624
    DOI: 10.26509/frbc-ec-202413
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