Local Labor Markets and Natural Resources: A Synthesis of the Literature

Marchand, Joseph; Weber, Jeremy G.

doi:10.2139/ssrn.2829368

Cited by 16 publications

(21 citation statements)

References 75 publications

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“…This is consistent with the empirical literature on natural resource booms, which generally shows population increases as wages increase during boom times (e.g. Marchand and Weber, 2018). In addition, the higher wages documented in the prior section are the most plausible explanation for the decline in the percentage of economically-disadvantaged students.…”

Section: Student Compositionsupporting

confidence: 89%

“…A boom in natural resource extraction provides a large and localized economic shock useful for addressing this question that spans the areas of education, labor markets, and public finance. In recent years, high energy prices and innovations in horizontal drilling and hydraulic fracturing have caused an oil and gas drilling boom in shale formations across the United States, increasing employment and wages (Feyrer et al, 2017;Marchand and Weber, 2018) and generating public revenues (Raimi and Newell, 2015;Weber et al, 2016). Home to four major shale formations, Texas has been the epicenter of the U.S. shale boom, with parts of the state experiencing large and localized shocks based on spatial variation in geology and temporal variation in energy prices and technological change.…”

Section: Introductionmentioning

confidence: 99%

“…Second, while this is the first comprehensive study of how resource booms affect schools, students, and teachers together through both the labor market and school finance channels, it also adds to the previous papers documenting the labor market effects on students. Numerous studies showed how resource booms can create jobs and raise incomes, drawing workers from near and far, as well as spilling over into other local sectors (for a review, see Marchand and Weber, 2018). In the U.S., these labor market effects previously caused high school students to drop out in coal areas (Black et al, 2005) and growth to slow in the relative demand for skills in oil areas (Kumar, 2017).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

How Local Economic Conditions Affect School Finances, Teacher Quality, and Student Achievement: Evidence from the Texas Shale Boom

Marchand¹,

Weber²

2019

J Policy Anal Manage

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Section: Student Compositionsupporting

confidence: 89%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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How Local Economic Conditions Affect School Finances, Teacher Quality, and Student Achievement: Evidence from the Texas Shale Boom

Marchand¹,

Weber²

2019

J Policy Anal Manage

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“…See Marchand and Weber () for a thorough review of the literature on local labor markets and natural resources.…”

mentioning

confidence: 99%

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

Jacobsen

2018

Economic Inquiry

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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 J23, Q33, R31)

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“…However, several review articles provide mixed support for the existence of a local resource curse (c.f. Badeeb, Lean, and Clark 2017;Cust and Poelhekke 2015;Gamu et al 2015;Marchand and Weber 2017;Ploeg and Poelhekke 2017). In fact, some studies also provide evidence of positive socio-economic effects of resource extraction via, for example, increases in local income and employment or the increased dynamism of small businesses (c.f.…”

mentioning

confidence: 99%

At Africa's Expense? Disaggregating the Social Impact of Chinese Mining Operations

et al. 2018

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. AbstractQualitative studies and media reports suggest that the presence of Chinese oil or mining companies generates resentments among local extractive communities due to low wages, poor working conditions, environmental degradation, the employment of foreign labour, and perceived racial discrimination. At the same time, Chinese investment in the extractive sector appears to enhance local infrastructure. So far, these claims have not been empirically tested in a systematic way. Relying on novel data on the control-rights regimes of diamond, gold, and copper mines and geo-referenced information from Afrobarometer surveys, this paper examines whether Chinese-controlled mining promotes anti-Chinese sentiments among the local populations of sub-Saharan African countries. In addition, we test the effect of mining contractors' nationality on socio-economic indicators such as local employment rates and infrastructure levels. Our logistic regression analysis for the period 1997-2014 reveals that the effect of Chinese mining companies on African local development is ambiguous: while proximity to Chinese-operated mines is associated with anti-Chinese sentiments and unemployment, populations living close to Chinese mining areas enjoy better infrastructure, such as paved roads or piped water. Multilevel mixed-effects estimations using district-level data from the Demographic Health Survey for 20 sub-Saharan countries corroborate these findings.

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Local Labor Markets and Natural Resources: A Synthesis of the Literature

Abstract: Short excerpts of these working papers may be quoted without explicit permission provided that full credit is given to the source.

Cited by 16 publications

References 75 publications

How Local Economic Conditions Affect School Finances, Teacher Quality, and Student Achievement: Evidence from the Texas Shale Boom

How Local Economic Conditions Affect School Finances, Teacher Quality, and Student Achievement: Evidence from the Texas Shale Boom

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

At Africa's Expense? Disaggregating the Social Impact of Chinese Mining Operations

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