The effects of oil price shocks on job reallocation

Herrera, Ana María; Karaki, Mohamad B.

doi:10.1016/j.jedc.2015.08.006

Cited by 67 publications

(52 citation statements)

References 26 publications

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“…Only recently have the findings of these studies been reexamined using more appropriate econometric methods (e.g., Kilian and Vigfusson 2001a,b, Herrera, Lagalo and Wada 2011, Alsalman and Herrera 2013, Herrera and Karaki 2013. The key findings can be summarized as follows:…”

Section: Nonlinear Models Of the Transmission Of Oil Price Shocksmentioning

confidence: 99%

Oil Price Shocks: Causes and Consequences

Kilian

2014

Annu. Rev. Resour. Econ.

273

150

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Research on oil markets conducted during the last decade has challenged long-held beliefs about the causes and consequences of oil price shocks. As the empirical and theoretical models used by economists have evolved, so has our understanding of the determinants of oil price shocks and of the interaction between oil markets and the global economy. Some of the key insights are that the real price of oil is endogenous with respect to economic fundamentals, and that oil price shocks do not occur ceteris paribus. This makes it necessary to explicitly account for the demand and supply shocks underlying oil price shocks when studying their transmission to the domestic economy. Disentangling cause and effect in the relationship between oil prices and the economy requires structural models of the global economy including oil and other commodity markets. JEL Code:Q43

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Section: Nonlinear Models Of the Transmission Of Oil Price Shocksmentioning

confidence: 99%

Oil Price Shocks: Causes and Consequences

Kilian

2014

Annu. Rev. Resour. Econ.

273

150

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“…Herrera and Karaki (2012) investigated the impact of oil price innovations on job creation and job destruction in the United States of America's manufacturing sector. The paper also examined whether the size of sectorial job creation and destruction, a year after an oil price shock, was equal for both the positive and negative oil price innovations of a typical and a large magnitude.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

“…As an essential component of transportation liquid fuel in a country where there are limited oil reserves, oil accounts for 6 percent of South Africa's total imports (EIA, 2013). Given the significance of oil to the South African economy, the movement of oil prices should be Previous studies (Ahmad, 2013;Herrera and Karaki, 2012;Keane and Prasad, 1996) have used various transmission channels to explain the employment impact of oil prices. For instance, Ahmad (2013) suggested that from a supply side, oil prices have a positive effect on unemployment in the long run.…”

Section: Introductionmentioning

confidence: 99%

“…Previous studies on the subject matter have examined the relationship between oil prices and employment in the developed nations, such as America (Herrera and Karaki, 2012;Keane and Prasad, 1996) and Turkey (Dogrul and Soytas, 2010), and rarely can one find such studies in the developing nations' context. The notable exception is Ahmad (2013)'s study which focused on Pakistan.…”

Section: Introductionmentioning

confidence: 99%

“…More so, for those studies that have examined the impact of oil prices in the developed nations, a majority of them focused on economic growth and aggregate employment (Dogrul and Soytas, 2010;Keane and Prasad, 1996). Thus, not much has been done in examining how oil prices affect employment in different sectors of the economies (notable exceptions are Ahmad, 2013;Herrera and Karaki, 2012). As such, the employment impact on oil prices in different sectors of the African economy, particularly South Africa, appears to be a neglected area of study despite the macroeconomic policy implications of such a study of the countries.…”

Section: Introductionmentioning

confidence: 99%

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The Impact Of Oil Prices On Sectorial Employment In South Africa

Sibanda¹,

Mishi²,

Tsegaye³

2015

IBER

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The oil price plummeted in 2014–2015: Is there an effect on Chinese firms' labour investment?

Liu

Shu-xian

et al. 2022

Int. J Fin Econ

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Using the exogenous event of oil price sharp decline in 2014–2015, this paper employs the difference‐in‐difference method to establish a causal link between the oil price decline and the Chinese firms' labour investment. Data of listed companies in China from 2012 to 2016 are used to explore this relationship. We show that the employment for firms in industries with significant negative oil price risk exposure increases 16.4% after the oil price plummeted, that is, the oil price decline significantly promotes the firms' labour force. Additionally, the positive effect of oil price decline on the firms' labour force is more pronounced in firms with higher risk‐taking, financing constraints, and industry competition. Lastly, we also document that the effect of oil price decline is through sales growth channels to increase labour demand. However, firms tend to overinvest in labour after the oil price plummeted. Based on these findings we suggest that oil price fluctuation should be an important factor for the Chinese government and enterprises when they make an economic decision related to the labour force.

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The effects of oil price shocks on job reallocation

Cited by 67 publications

References 26 publications

Oil Price Shocks: Causes and Consequences

Oil Price Shocks: Causes and Consequences

The Impact Of Oil Prices On Sectorial Employment In South Africa

The oil price plummeted in 2014–2015: Is there an effect on Chinese firms' labour investment?

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