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Causal effects of the fracking boom on long‐term resident workers
Author(s) -
Winters John V.,
Cai Zhengyu,
Maguire Karen,
Sengupta Shruti
Publication year - 2021
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12513
Subject(s) - boom , earnings , oil boom , residence , oil shale , economics , production (economics) , shale gas , directional drilling , fossil fuel , term (time) , petroleum industry , drilling , business , labour economics , demographic economics , environmental science , geology , engineering , macroeconomics , finance , environmental engineering , mechanical engineering , physics , quantum mechanics , waste management , paleontology
Horizontal drilling innovations revolutionized the U.S. oil and gas industry and facilitated a boom in production in the mid‐2000s in regions with shale and tight‐sands reservoirs. This paper examines the effects of the boom on individual employment and earnings within boom states. We account for endogenous migration decisions by using a novel instrument for oil and gas production in workers' state of residence. We find statistically significant and economically meaningful positive effects of the oil and gas boom for long‐term resident workers, those who were born in and reside in their home state.