Causal effects of the f racking boom on long-term resident workers

摘要

Horizontal drilling innovations revolutionized the U.S. oil and gas industry and facilitated a boom in production in the mid-2000s in regions with shale and tight-sands reservoirs. This paper examines the effects of the boom on individual employment and earnings within boom states. We account for endogenous migration decisions by using a novel instrument for oil and gas production in workers' state of residence. We find statistically significant and economically meaningful positive effects of the oil and gas boom for long-term resident workers, those who were born in and reside in their home state.