Working Paper: NBER ID: w20409
Authors: Joseph E. Aldy; Susie Chung; Napat Jatusripitak; Brett Long; Carlos Paez
Abstract: In 2010, the Gulf Coast experienced the largest oil spill, the greatest mobilization of spill response resources, and the first Gulf-wide deepwater drilling moratorium in U.S. history. Taking advantage of the unexpected nature of the spill and drilling moratorium, I estimate the net effects of these events on Gulf Coast employment and wages. Despite predictions of major job losses in Louisiana -- resulting from the spill and the drilling moratorium -- I find that Louisiana coastal parishes, and oil-intensive parishes in particular, experienced a net increase in employment and wages. In contrast, Gulf Coast Florida counties, especially those south of the Panhandle, experienced a decline in employment. Analysis of accommodation industry employment and wage, business establishment count, sales tax, and commercial air arrival data likewise show positive economic activity impacts in the oil-intensive coastal parishes of Louisiana and reduced economic activity along the Non-Panhandle Florida Gulf Coast.
Keywords: labor market; oil spill; Deepwater Horizon; employment; wages; Gulf Coast
JEL Codes: J30; J64; Q40
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Deepwater Horizon oil spill (F64) | Employment in Louisiana's oil-intensive parishes (L71) |
| Deepwater Horizon oil spill (F64) | Employment in Alabama coastal counties (J68) |
| Deepwater Horizon oil spill (F64) | Employment in non-panhandle Florida counties (J49) |
| Deepwater Horizon oil spill (F64) | Average wages in Louisiana's oil parishes (J31) |
| Deepwater Horizon oil spill (F64) | Average wages in Alabama coastal counties (J31) |
| Deepwater Horizon oil spill (F64) | Overall net employment effect across the Gulf Coast (J63) |