Hostname: page-component-78c5997874-8bhkd Total loading time: 0 Render date: 2024-11-03T01:35:45.516Z Has data issue: false hasContentIssue false
  • English
  • Français

Resident vs. Nonresident Employment Associated with Marcellus Shale Development

Published online by Cambridge University Press:  15 September 2016

Douglas H. Wrenn ,
Timothy W. Kelsey  and
Edward C. Jaenicke
Douglas H. Wrenn
Affiliation:
Department of Agricultural Economics, Sociology, and Education at Pennsylvania State University
Timothy W. Kelsey*
Affiliation:
Department of Agricultural Economics, Sociology, and Education at Pennsylvania State University
Edward C. Jaenicke
Affiliation:
Department of Agricultural Economics, Sociology, and Education at Pennsylvania State University
*
Correspondence: Timothy W. Kelsey ▪ Department of Agricultural Economics, Sociology, and Agricultural Education ▪ 105-A Armsby ▪ Pennsylvania State University ▪ University Park, PA 16802 ▪ Phone 814.865.9542 ▪ Email [email protected].
Get access

Abstract

There is much debate about the employment effect of shale gas development, especially as it relates to extraction counties. Anecdotal evidence suggests that many of the jobs created are filled by nonresidents. We examine the impact shale gas development has on local employment in Pennsylvania using a data set that links workers to their personal residences. We find that activity in the Marcellus shale has had a modest positive impact on job growth. The impact is cut in half, however, when we use data for county residents only. Thus, traditional employment data may overestimate employment impacts from shale development.

Keywords

employmentMarcellus shalenatural gasnatural resources
Type
Selected Papers
Information
Agricultural and Resource Economics Review , Volume 44 , Issue 2: Special Issue: Unconventional Gas and Oil Development: Economic and Environmental Impacts , August 2015 , pp. 1 - 19
Copyright
Copyright © 2015 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Allcott, H. and Keniston, D. 2014. “Dutch Disease or Agglomeration? The Local Economic Effects of Natural Resource Booms in North America.” Working paper, New York University.Google Scholar
Banzhaf, H.S. and Lavery, N. 2010. “Can Land Tax Help Curb Urban Sprawl? Evidence from Growth Patterns in Pennsylvania.” Journal of Urban Economics 67(2): 169–179.Google Scholar
Banzhaf, H.S. and Walsh, R. 2008. “Do People Vote with Their Feet? An Empirical Test of Tiebout's Mechanism.” American Economic Review 98(3): 843–863.Google Scholar
Bertrand, M. Duflo, E. and Mullainathan, S. 2004. “How Much Should We Trust Differences-in-differences Estimates?” The Quarterly Journal of Economics 119(1): 249–275.Google Scholar
Black, D. McKinnish, T. and Sanders, S. 2005. “The Economic Impact of the Coal Boom and Bust.” The Economic Journal 115(503): 449–476.Google Scholar
Brasier, K.J. Filteau, M.R. McLaughlin, D.K. Jacquet, J. Stedman, R.C. Kelsey, T.W. and Goetz, S.J. 2011. “Residents' Perceptions of Community and Environmental Impacts from Development of Natural Gas in the Marcellus Share: A Comparison of Pennsylvania and New York Cases.” Journal of Rural Studies 26(1): 32–61.Google Scholar
Brown, J.P. 2014. “Production of Natural Gas from Shale in Local Economies: A Resource Blessing or Curse?” Economic Review, Federal Reserve Bank of Kansas City 99(1): 119–147.Google Scholar
Brundage, T.L. Jacquet, J. Kelsey, T.W. Ladlee, J.R. Lobdell, J. Lorson, J.F. Michael, L.L. and Murphy, T.B. 2011. “Pennsylvania Statewide Marcellus Shale Workforce Needs.” Marcellus Shale Education and Training Center, Williamsport, PA. Google Scholar
Considine, T.J. Watson, R. and Blumsack, S. 2010. “The Economic Impacts of the Pennsylvania Marcellus Shale Natural Gas Play: An Update.” College of Earth and Mineral Sciences, Pennsylvania State University, University Park. Google Scholar
Considine, T.J. Watson, R. and Blumsack, S. 2011. “The Pennsylvania Marcellus Natural Gas Industry: Status, Economic Impacts, and Future Potential.” Department of Energy, Environmental, and Mineral Economics, Pennsylvania State University, University Park.Google Scholar
Harris, R.D.F. and Tzavalis, E. 1999. “Inference for Unit Roots in Dynamic Panels Where the Time Dimension Is Fixed.” Journal of Econometrics 91(2): 201–226.Google Scholar
Herzenberg, S. 2011. “Drilling Deeper into Job Claims: The Actual Contribution of Marcellus Shale to Pennsylvania Job Growth.” Keystone Research Center, Harrisburg, PA. Google Scholar
Im, K.S. Pesaran, M.H. and Shin, Y. 2003. “Testing for Unit Roots in Heterogeneous Panels.” Journal of Econometrics 115(1): 53–74.Google Scholar
Imbens, G.W. and Wooldridge, J.M. 2009. “Recent Development in the Econometrics of Program Evaluation.” Journal of Economic Literature 47(1): 5–86.Google Scholar
Kelsey, T.W. Shields, M. Ladlee, J.R. and Ward, M. 2011. “Economic Impacts of Marcellus Shale in Pennsylvania: Employment and Income in 2009.” Marcellus Shale Education and Training Center, Williamsport, PA. Google Scholar
Marchand, J. 2012. “Local Labor Market Impacts of Energy Boom-Bust-Boom in Western Canada.” Journal of Urban Economics 71(1): 165–174.Google Scholar
Rahm, B.G. Bates, J.T. Bertoria, L.R. Galford, A.E. Yoxtheimer, D.A. and Riha, S.J. 2013. “Wastewater Management and Marcellus Shale Gas Development: Trends, Drivers, and Planning Implications.” Journal of Environmental Management 120(1): 105–113.Google Scholar
Wang, Z. and Krupnick, A. 2013. “A Retrospective View of Shale Gas Development in the United States.” Discussion paper 13-12, Resources for the Future, Washington, DC.CrossRefGoogle Scholar
Weber, J.G. 2012. “The Effects of a Natural Gas Boom on Employment and Income in Colorado, Texas, and Wyoming.” Energy Economics 34(5): 1580–1588.Google Scholar
Weber, J.G. 2014. “A Decade of Natural Gas Development: The Makings of a Resource Curse?” Resource and Energy Economics 37(1): 168–183.Google Scholar
Weinstein, A.L. and Partridge, M.D. 2011. “The Economic Value of Shale Natural Gas in Ohio.” College of Food, Agricultural, and Environmental Sciences, Ohio State University, Columbus.Google Scholar
White, J. 2012. “Why Aren't There More Marcellus Shale Jobs for Pennsylvania Workers?” Message posted to http://patch.com/pennsylvania/canon-mcmillan/why-aren-t-there-more-marcellus-shale-jobs-for-pa-workers (accessed May 24, 2014).Google Scholar