Scandinavian Working Papers in Economics

Discussion Paper Series in Economics,
Norwegian School of Economics, Department of Economics

No 3/2020: Losing in a Boom: Long-term Consequences of a Local Economic Shock for Female Labour Market Outcomes

Patrick Bennett (), Chiara Ravetti and Po Yin Wong
Additional contact information
Patrick Bennett: Dept. of Economics, Norwegian School of Economics and Business Administration, Postal: NHH, Department of Economics, Helleveien 30, N-5045 Bergen, Norway
Chiara Ravetti: Polytechnic of Turin
Po Yin Wong: Research Department, Hong Kong Monetary Authority

Abstract: This paper examines the long-term labour market consequences of a positive economic shock, the first discovery of oil and gas in Norway. Existing studies focus on the short-term and men, while less is known about women and the persistence of such shocks. Oil discovery increased male earnings (by 7%), while female earnings declined (by 10%). These shifts persist for two decades. Labour force participation and occupational change account for the earnings divergence. Within married couples, wives’ earnings declined, but household earnings increased. However, women’s income loss in oil regions is transitory: younger cohorts catch up to women in non-oil regions.

Keywords: Labour market; Fairness

JEL-codes: J00

66 pages, February 19, 2020

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