Oil & Gas Induced Economic Fluctuations and Self-Employment

37 Pages Posted: 21 Jul 2020 Last revised: 28 Aug 2022

See all articles by Bulent Unel

Bulent Unel

Louisiana State University, Baton Rouge

Gregory Upton

Louisiana State University, Baton Rouge

Date Written: August 26, 2022

Abstract

This paper exploits oil and gas activity generated by recent technological advancements to understand the effect of localized boom and busts on self-employment. We find a positive contemporaneous impact on self-employment, mainly driven by self-employment in non-mining industries. We also find that self-employment is pro-cyclical, meaning that self-employment increases during oil and gas booms and contracts during the bust. Finally, results suggest that self-employment explains an economically meaningful share of the employment adjustment; specifically we estimate that about 11% of the employment adjustment can be explained by self-employed workers, a group which makes up about 9% of total employment.

Keywords: Entrepreneurship, Oil and Natural Gas, Hydraulic Fracturing, Incorporated Self-employment, Unincorporated Self-employment

JEL Classification: J24, L26, M13, Q33, Q35

Suggested Citation

Unel, Bulent and Upton, Gregory, Oil & Gas Induced Economic Fluctuations and Self-Employment (August 26, 2022). USAEE Working Paper No. 20-461, Available at SSRN: https://ssrn.com/abstract=3656373 or http://dx.doi.org/10.2139/ssrn.3656373

Bulent Unel

Louisiana State University, Baton Rouge ( email )

Department of Economics
2134 Patrick F. Taylor Hall
Baton Rouge, LA 70803
United States

Gregory Upton (Contact Author)

Louisiana State University, Baton Rouge ( email )

Baton Rouge, LA 70803
United States

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