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

24 Pages Posted: 5 Dec 2018

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: January 2019

Abstract

This article presents evidence on the distributional effects of energy extraction by examining the effect of the recent U.S. energy boom on wage rates and housing. 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 tighter labor market that benefited local workers. Wage rates also increased substantially across the entire wage rate distribution, although the percentage increase was slightly higher at the bottom of the distribution than at the top. 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 suggest that bans on drilling have negative monetary consequences for a large share of local residents.

JEL Classification: J23, Q33, R31

Suggested Citation

Jacobsen, Grant, Who Wins in an Energy Boom? Evidence from Wage Rates and Housing (January 2019). Economic Inquiry, Vol. 57, Issue 1, pp. 9-32, 2019, Available at SSRN: https://ssrn.com/abstract=3295899 or http://dx.doi.org/10.1111/ecin.12725

Grant Jacobsen (Contact Author)

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

1280 University of Oregon
Eugene, OR 97403
United States

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