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Title: Migrants and Boomtowns: Micro Evidence from the U.S. Shale Boom

Citation Type: Working Paper

Publication Year: 2020

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Abstract: This paper analyzes the relationship between oil and gas development and in-migration of workers into boomtowns, taking into account their human capital. Using zero-inflated negative binomial estimation methodology, we find that shale development has differing scale and demand shock impacts on U.S. interregional migration flows. The results demonstrate the heterogeneity of migration responses to shale developments with a disproportionately higher positive effect for medium-high human capital workers with technical degrees or trainings common in the energy industry. Furthermore, labor demand shocks from oil and gas development have a modest association with migration flows, which is contrary to the assumption that natural resource boom is a considerable attraction for migrants. This study highlights the types of human capital gained by oil and gas development areas characterized as being rural and sparsely populated, which can have important implications for the long-run growth and economic resilience of the boomtowns.

Url: https://www.gssi.it/images/DPRSEG_2020-11.pdf

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Authors: Rajbhandari, Isha; Faggian, Alessandra; Partridge, Mark

Series Title: GSSI Discussion Paper Series in Regional Science & Economic Geography

Publication Number: 2020-11

Institution: Gran Sasso Science Institute

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Publisher Location: L'Aquila, Italy

Data Collections: IPUMS USA, IPUMS NHGIS

Topics: Labor Force and Occupational Structure, Migration and Immigration, Natural Resource Management

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