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Employment Impacts of Upstream Oil and Gas Investment in the United States
Author: Mark Agerton, Peter Hartley, Kenneth Medlock III, and Ted Temzelides
Series:
IMF Working Papers
Volume/Issue:
Volume 2015: Issue 028
Language:
English
Publication Date:
11 Feb 2015
DOI:
https://doi.org/10.5089/9781498376068.001
ISBN:
9781498376068
ISSN:
1018-5941
Pages:
36
Keywords:
WP; job creation; Employment; employment impact; employment growth; state employment; boom state; employment response; employment multiplier; employment consequence; employment activity; Oil prices; Oil; Agroindustries; North America
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Technological progress in the exploration and production of oil and gas during the 2000s has led to a boom in upstream investment and has increased the domestic supply of fossil fuels. It is unknown, however, how many jobs this boom has created. We use time-series methods at the national level and dynamic panel methods at the state-level to understand how the increase in exploration and production activity has impacted employment. We find robust statistical support for the hypothesis that changes in drilling for oil and gas as captured by rig-counts do in fact, have an economically meaningful and positive impact on employment. The strongest impact is contemporaneous, though months later in the year also experience statistically and economically meaningful growth. Once dynamic effects are accounted for, we estimate that an additional rig-count results in the creation of 37 jobs immediately and 224 jobs in the long run, though our robustness checks suggest that these multipliers could be bigger.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund