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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 tkelsey@psu.edu.
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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 

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