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

Upjohn Institute Working Paper No. 17-271

54 Pages Posted: 25 May 2017 Last revised: 6 Feb 2021

See all articles by Grant Jacobsen

Grant Jacobsen

University of Oregon - School of Planning, Public Policy, and Management

Multiple version iconThere are 2 versions of this paper

Date Written: 2016

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.

Keywords: Oil, Natural Gas, Hydraulic Fracturing, Fracking, Resource Extraction, Labor Market Effects, Resource Curse, Dutch Disease, Wage Rates, Housing Values, Rental Prices

JEL Classification: J23, Q33, R31

Suggested Citation

Jacobsen, Grant, Who Wins in an Energy Boom? Evidence from Wage Rates and Housing (2016). Upjohn Institute Working Paper No. 17-271, Available at SSRN: https://ssrn.com/abstract=2972681 or http://dx.doi.org/10.2139/ssrn.2972681

Grant Jacobsen (Contact Author)

University of Oregon - School of Planning, Public Policy, and Management ( email )

1280 University of Oregon
Eugene, OR 97403
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
30
Abstract Views
365
PlumX Metrics