The Local Effects of the Texas Shale Boom on Schools, Students, and Teachers

42 Pages Posted: 4 Jan 2018

See all articles by Joseph Marchand

Joseph Marchand

University of Alberta - Department of Economics

Jeremy Weber

University of Pittsburgh - Graduate School of Public & International Affairs

Date Written: October 1, 2017

Abstract

This study explores how the Texas shale boom affected schools, students, and teachers. Using variation in geology across school districts and oil prices over time, the evidence shows that test scores in the average shale district declined despite tripling the tax base and creating a revenue windfall. Greater spending went to capital projects and servicing debt, not to teachers. Higher labor market wages did not affect student completion rates, but a growing gap in wages between the private and education sectors contributed to greater teacher turnover and more inexperienced teachers, which helps explain the decline in test scores.

Keywords: local labor markets, local public finances, resource booms, schools, students, teachers

JEL Classification: H70, I22, J24, J40, Q33, R23

Suggested Citation

Marchand, Joseph and Weber, Jeremy, The Local Effects of the Texas Shale Boom on Schools, Students, and Teachers (October 1, 2017). USAEE Working Paper No. 17-324, Available at SSRN: https://ssrn.com/abstract=3096293 or http://dx.doi.org/10.2139/ssrn.3096293

Joseph Marchand

University of Alberta - Department of Economics ( email )

8-14 Tory Building
Edmonton, Alberta T6G 2H4
Canada

Jeremy Weber (Contact Author)

University of Pittsburgh - Graduate School of Public & International Affairs ( email )

Pittsburgh, PA 15260-0001
United States

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