Fracking and Health-Related Absenteeism

Luis Sarmiento and Nicole Waegner

Click here to access the full working article


Abstract

Recent literature has causally linked environmental pollution to poor health outcomes that result in adverse labor market impacts. We assess the impact of pollution externalities from hydraulic fracturing on surrounding households’ labor market outcomes by analyzing health-related employee absenteeism: If fracking leads to significant negative environmental externalities, then individuals living in close proximity to fracking sites will have poorer health outcomes and a higher number of sick leave days than comparable individuals. We combine 2000 to 2014 individual- and household-level data from the PSID with oil and gas well data from Pennsylvania. We infer causality through the use of a differences-in-differences design that exploits intertemporal and geographical variation in construction dates and locations of fracking wells. Furthermore, propensity-score matching ensures comparability between treatment and control groups. Preliminary results provide the first evidence of a significant adverse labor market effect of fracking, indicating that exposure to a well increases absenteeism by three days.


  • Submission Status: Working paper still not submitted to any journal.

Conferences

  • EAERE 2019; Manchester, U.K..
  • Mannheim Energy Conference 2019; Mannheim, Ger.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.