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Title: Short- and Long-Run Consequences of Oil Boom and Bust in U.S. Local Labor Markets
Citation Type: Conference Paper
Publication Year: 2015
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Abstract: The U.S. is experiencing a new oil boom, threatened by the sharp decline of the price in 2014. How long does it take for the U.S. local labor markets to reach a new equilibrium after an oil shock hits? Are these adjustments symmetric during booms and busts, and what are their welfare consequences on the local population? In this project I estimate both the dynamic responses and the long-run (decennial) oil price elasticities of immigration, employment, earnings, and transfer payments at the Commuting Zone level between 1969 and 1999. Using Census micro-data I pin down the welfare incidence of the shocks by skill group, as well as the distributional effects on wages. Preliminary results show that oil rich markets benefit in terms of employment and experience large migration inflows during the boom. The impact of the 1980s bust is symmetric both in terms of jobs lost and average income decline, but it persists throughout the 1990s. The results complement the recent literature by providing the welfare effects of natural resources specialization.
Url: http://legacy.iza.org/conference_files/SUMS_2015/viewProgram?conf_id=2715
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Authors: Basso, Gaetano
Conference Name: 18th IZA European Summer School in Labor Economics
Publisher Location: Inning, Germany
Data Collections: IPUMS USA
Topics: Labor Force and Occupational Structure, Poverty and Welfare
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