Who Wins in an Energy Boom? Evidence from Wage Rates and Housing

Authors

Grant D. Jacobsen, University of Oregon

Publication Date

11-1-2016

Series

Upjohn Institute working paper ; 17-271

DOI

10.17848/wp17-271

Abstract

This paper presents evidence on the distributional effects of energy extraction by examining the recent U.S. energy boom. The boom increased local wage rates in almost every major occupational category. The increase occurred regardless of whether the occupation experienced a corresponding change in employment, suggesting a more competitive labor market that benefited local workers. Local housing values and rental prices both increased, thereby benefiting landowners. For renters, the increase in prices was completely offset by a contemporaneous increase in income. The results indicate that bans on drilling have negative monetary consequences for a large share of local residents.

Issue Date

October 2015, Revised November 2016

Sponsorship

W.E. Upjohn Institute for Employment Research Early Career Research Award 15-150-07

Subject Areas

LABOR MARKET ISSUES; Wages, health insurance and other benefits; ECONOMIC DEVELOPMENT; Local labor markets