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Boom Town Business Dynamics

Author

Listed:
  • Ryan A. Decker
  • Meagan McCollum
  • Gregory B. Upton Jr.
Abstract
The U.S. shale oil and gas boom provides a unique opportunity to study economic growth in a “boom town” environment, derive insights about labor market expansions more generally, and identify the causal effects of economic growth on specific margins of business adjustment. Creation of new establishments—separate from expansion of existing establishments—accounts for a disproportionate share of the multi-industry employment growth sparked by the shale boom, an intuitive but not inevitable empirical result that is consistent with models of firm dynamics. New firms, in particular, contribute nearly half of the cumulative employment growth resulting from the shale boom.

Suggested Citation

  • Ryan A. Decker & Meagan McCollum & Gregory B. Upton Jr., 2024. "Boom Town Business Dynamics," Journal of Human Resources, University of Wisconsin Press, vol. 59(2), pages 627-651.
    • Handle: RePEc:uwp:jhriss:v:59:y:2024:i:2:p:627-651
    Note: DOI: https://doi.org/10.3368/jhr.0221-11501R1
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    1. Eduardo Minuci & Scott Schuh, 2022. "Are West Virginia Banks Unique?," Working Papers 22-03, Department of Economics, West Virginia University.

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    More about this item

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources

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