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Effects of Fracking on Entrepreneurial Activity in the U.S

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Abstract

I examine the causal impact of oil and gas extraction from new wells on entry and exit of self-employed business owners. I classify self-employed individuals into entrepreneurs and other business owners. I find that fracking induces more wage and salary workers to become entrepreneurs, but does not have any significant effects on the exit rate of entrepreneurs. In addition, fracking lowers the entry rate of other business owners, but has no effect on their exit rate. Extending my analysis to industry-level reveals that the positive impact on the entry to entrepreneurship occurs primarily in the service sector, and the negative effect on entry to unincorporated self-employment in the agricultural sector.

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  • Bulent Unel, 2019. "Effects of Fracking on Entrepreneurial Activity in the U.S," Departmental Working Papers 2019-05, Department of Economics, Louisiana State University.
    • Handle: RePEc:lsu:lsuwpp:2019-05
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    File URL: https://www.lsu.edu/business/economics/files/workingpapers/pap19_05.pdf
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