Friday, February 7, 2014
Production of Natural Gas From Shale in Local Economies: A Resource Blessing or Curse?
Kansas City Fed: This article investigates how the recent boom in the U.S. natural gas industry has affected local economies in the central United States. Labor market conditions at the county level in a nine-state region are analyzed using econometric model to determine how employment and wages have responded to the rapid expansion of natural gas production from 2001 to 2011. The article fi nds a modest positive impact on local labor market outcomes in counties where natural gas production has increased, and little evidence of a natural resource curse.