Resident Versus Non-Resident Employment Impacts Associated with Marcellus Shale Development

26 Pages Posted: 23 Mar 2015

See all articles by Edward C. Jaenicke

Edward C. Jaenicke

College of Agricultural Sciences, Department of Agricultural Economics and Rural Sociology

Timothy W. Kelsey

College of Agricultural Sciences, Department of Agricultural Economics and Rural Sociology

Douglas H. Wrenn

Pennsylvania State University, Agricultural Economics, Sociology, and Education

Date Written: January 15, 2015

Abstract

There is much debate surrounding the employment effect of shale gas development, especially as it relates to extraction counties. Anecdotal evidence suggests that many jobs are filled by non-resident workers. We examine the impact that shale gas development has had on local employment in Pennsylvania. Using data that links workers to their personal residences we find that Marcellus activity has had a positive, albeit modest, impact on job growth. We also find that the impact is 50 percent lower using data with only county residents suggesting that traditional employment data may overestimate the employment impacts on residents from shale development.

Keywords: Natural Resources, Employment, Natural Gas, Marcellus Shale

JEL Classification: J20, J21, R12

Suggested Citation

Jaenicke, Edward C. and Kelsey, Timothy W. and Wrenn, Douglas H., Resident Versus Non-Resident Employment Impacts Associated with Marcellus Shale Development (January 15, 2015). Available at SSRN: https://ssrn.com/abstract=2583512 or http://dx.doi.org/10.2139/ssrn.2583512

Edward C. Jaenicke

College of Agricultural Sciences, Department of Agricultural Economics and Rural Sociology ( email )

University Park, PA 16802-3306
United States

Timothy W. Kelsey

College of Agricultural Sciences, Department of Agricultural Economics and Rural Sociology ( email )

University Park, PA 16802-3306
United States

Douglas H. Wrenn (Contact Author)

Pennsylvania State University, Agricultural Economics, Sociology, and Education ( email )

University Park, PA 16802-3306
United States

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