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

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