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Spatial Diffusion of Local Economic Shocks in Social Networks: Evidence from the US Fracking Boom
Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI).ORCID iD: 0000-0002-5193-7739
Number of Authors: 12024 (English)In: Journal of Labor Economics, ISSN 0734-306X, E-ISSN 1537-5307Article in journal (Refereed) Epub ahead of print
Abstract [en]

I study the role of social networks in the propagation of economic shocks across space. Combining comprehensive data on US online friendships with extraction activity during the fracking boom, I show that exogenous changes in economic conditions in one area affect outcomes in socially proximate places, regardless of how far apart they are geographically. Social exposure to fracking generates a wage spillover amounting to one-third of every dollar of energy produced in a county’s social network. This spillover decays slowly in space and is associated with a large mobility response. Diffusion mainly stems from the commuting of transient fracking workers.

Place, publisher, year, edition, pages
2024.
National Category
Sociology (excluding Social Work, Social Psychology and Social Anthropology)
Research subject
Sociology
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URN: urn:nbn:se:su:diva-233940DOI: 10.1086/732300OAI: oai:DiVA.org:su-233940DiVA, id: diva2:1902530
Available from: 2024-10-01 Created: 2024-10-01 Last updated: 2024-10-02

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Diemer, Andreas

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