Is Shale Development Drilling Holes in the Human Capital Pipeline?

30 Pages Posted: 18 Jan 2016

See all articles by Dan S. Rickman

Dan S. Rickman

Oklahoma State University - Stillwater - Department of Economics & Legal Studies in Business

Hongbo Wang

Oklahoma State University - Stillwater

John V. Winters

Iowa State University - Department of Economics

Abstract

Using the Synthetic Control Method (SCM) and a novel method for measuring changes in educational attainment we examine the link between educational attainment and shale oil and gas extraction for the states of Montana, North Dakota, and West Virginia. The three states examined are economically-small, relatively more rural, and have high levels of shale oil and gas reserves. They also are varied in that West Virginia is intensive in shale gas extraction, while the other two are intensive in shale oil extraction. We find significant reductions in high school and college attainment among all three states' initial residents because of the shale booms.

Keywords: shale development, synthetic control method, educational attainment

JEL Classification: Q4, R1, R2

Suggested Citation

Rickman, Dan S. and Wang, Hongbo and Winters, John V., Is Shale Development Drilling Holes in the Human Capital Pipeline?. IZA Discussion Paper No. 9647. Available at SSRN: https://ssrn.com/abstract=2716588

Dan S. Rickman (Contact Author)

Oklahoma State University - Stillwater - Department of Economics & Legal Studies in Business ( email )

201 Business Building
Stillwater, OK 74078-0555
United States

Hongbo Wang

Oklahoma State University - Stillwater ( email )

Stillwater, OK 74078-0555
United States

John V. Winters

Iowa State University - Department of Economics ( email )

260 Heady Hall
Ames, IA 50011
United States

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