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Effect of natural resource extraction on school performance: Evidence from Texas

Author

Listed:
  • Anita Schiller
  • Aurelie Slechten

Abstract

This study examines the effects of oil and gas extraction activities on the educational outcomes of high school students in Texas, focusing on potential variations in these impacts among different demographic groups. We use school-level data from the Texas Academic Performance Reports between 2012-2020, with school performance measured by average scores on the American College Test (ACT). The primary variable of interest is the exposure to oil and gas activities, measured by changes in oil and gas revenues within each school district. The empirical approach controls for school characteristics, and student demographics. To address endogeneity concerns, we adopt an instrumental variable approach. Although the overall impact of oil and gas operations on average school ACT scores is not statistically significant, these activities do influence the relationship between student socioeconomic status and academic achievement. Specifically, for schools situated within districts that receive substantial oil and gas revenues, a small increase in the proportion of economically disadvantaged students is associated with a substantial decline in ACT scores.

Suggested Citation

  • Anita Schiller & Aurelie Slechten, 2024. "Effect of natural resource extraction on school performance: Evidence from Texas," Working Papers 411897926, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:411897926
    as

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    File URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/LancasterWP2024_004.pdf
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    References listed on IDEAS

    as
    1. Dakshina G. De Silva & Robert P. McComb & Anita R. Schiller, 2020. "Do Localities Benefit from Natural Resource Extraction?," The Energy Journal, , vol. 41(5), pages 185-212, September.
    2. Joseph Marchand & Jeremy G. Weber, 2020. "How Local Economic Conditions Affect School Finances, Teacher Quality, and Student Achievement: Evidence from the Texas Shale Boom," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(1), pages 36-63, January.
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    More about this item

    Keywords

    natural resources; oil and gas activities; human capital; education;
    All these keywords.

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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