Effects of the Shale Boom on Entrepreneurship in the U.S.

39 Pages Posted: 21 Jul 2020 Last revised: 12 Dec 2020

See all articles by Bulent Unel

Bulent Unel

Louisiana State University, Baton Rouge

Gregory Upton

Louisiana State University, Baton Rouge

Date Written: December 11, 2020

Abstract

This paper exploits new oil and gas activity generated by recent technological advancements to understand the effect of localized boom and busts on self-employment. We find a positive and contemporaneous impact on self-employment in non-mining sectors, mainly stemming from unincorporated self-employed individuals. The impact is short-lived, i.e. once the boom subsides, the self-employment adjusts closer to pre-boom levels. Point estimates suggest that a large part of the employment adjustment comes from unincorporated self-employed individuals - a group that makes up about 6% of total employment.

Keywords: Entrepreneurship, Oil and Natural Gas, Hydraulic Fracturing, Incorporated Self-employment, Unincorporated Self-employment

JEL Classification: J24, L26, M13, Q33, Q35

Suggested Citation

Unel, Bulent and Upton, Gregory, Effects of the Shale Boom on Entrepreneurship in the U.S. (December 11, 2020). USAEE Working Paper No. 20-461, Available at SSRN: https://ssrn.com/abstract=3656373 or http://dx.doi.org/10.2139/ssrn.3656373

Bulent Unel

Louisiana State University, Baton Rouge ( email )

Department of Economics
2134 Patrick F. Taylor Hall
Baton Rouge, LA 70803
United States

Gregory Upton (Contact Author)

Louisiana State University, Baton Rouge ( email )

Baton Rouge, LA 70803
United States

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