Local labor market impacts of energy boom-bust-boom in Western Canada

Abstract

JEL classification: J23 Q33 R23 Keywords:Boom and bust Energy Job multipliers Labor demand shocks Local labor markets a b s t r a c tThe impacts of energy price boom and bust are analyzed through the differential growth in employment and earnings between local labor markets with and without energy resources in Western Canada. The estimated differentials attributed to the boom-induced labor demand shocks show significant direct and indirect impacts on the earnings and employment within the energy extraction and other nonenergy local sectors respectively. The local job multipliers indicate that job creation within the energy extraction sector leads to modest job creation within the non-energy local sectors during boom periods. For every ten energy extraction jobs created during a boom period, approximately three construction jobs, two retail jobs, and four and a half service jobs are created.

Measures, Drivers and Effects of Green Employment: Evidence from US Local Labor Markets, 2006-2014

“…Ranking multipliers by type of tradable activity, we observe that green jobs are at the top of the list, just below the highest value (5) for high-tech manufacturing (Moretti, 2010). Remarkably, to assess the economic implications of investing in green rather than brown activities, the green job multiplier appears significantly larger than the multipliers found by Marchand (2012) for mining and by Weber (2012) for shale gas. The finding that the local green multiplier is closer to the multiplier effect of high-tech activities rather than mining is not surprising given the high average quality of green employment in terms of both educational requirement and average wages.…”

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The local employment impacts of mining: an econometric analysis of job multipliers in northern Sweden

“…Considering the limitations of both I/O and CGE modeling, scholars have increasingly employed ex post econometric models to measure the significance of employment impacts (Moretti 2010;Marchand 2012). Here, data on changes in sectoral employment across regions over a certain time period are collected, and in the econometric specification these data can be regressed on changes in, for instance, mining employment.…”

Unconventional Gas and Oil Development in the United States: Economic Experience and Policy Issues

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