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.
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