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Unemployment ripple: The impact of mine closures in Canada, 1987 to 2020

Dallaire-Fortier, Clara Lea LU (2024) In Resources Policy 92.
Abstract
Between 1980 and 2000, total employment in the Canadian mining sector halved. While the literature on resource economy is thriving in Canada, little is known about how local labor markets experienced such a decline. This article presents a novel strategy to measure the effects of mine closures on local direct, indirect, and induced employment. This ripple effect is estimated using impulse response functions over a 10-year horizon after the closure. I focus on the period between 1987 and 2020 and identify mine closures by introducing a novel longitudinal database constructed from archival maps. Results show that a persistent negative effect on mining employment is associated with a delayed and substantial negative impact on employment in... (More)
Between 1980 and 2000, total employment in the Canadian mining sector halved. While the literature on resource economy is thriving in Canada, little is known about how local labor markets experienced such a decline. This article presents a novel strategy to measure the effects of mine closures on local direct, indirect, and induced employment. This ripple effect is estimated using impulse response functions over a 10-year horizon after the closure. I focus on the period between 1987 and 2020 and identify mine closures by introducing a novel longitudinal database constructed from archival maps. Results show that a persistent negative effect on mining employment is associated with a delayed and substantial negative impact on employment in industries with backward and forward linkages with the mining industry. The article contributes with a finer understanding of the transmission mechanism across the local labor markets and clarifies the need for cross-industry policies after a closure. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Resources Policy
volume
92
publisher
Elsevier
external identifiers
  • scopus:85191500889
ISSN
0301-4207
DOI
10.1016/j.resourpol.2024.104901
language
English
LU publication?
yes
id
5258a0bb-c3af-4cf2-b506-592bdd5af0b4
date added to LUP
2024-11-04 12:49:02
date last changed
2025-04-04 15:15:27
@article{5258a0bb-c3af-4cf2-b506-592bdd5af0b4,
  abstract     = {{Between 1980 and 2000, total employment in the Canadian mining sector halved. While the literature on resource economy is thriving in Canada, little is known about how local labor markets experienced such a decline. This article presents a novel strategy to measure the effects of mine closures on local direct, indirect, and induced employment. This ripple effect is estimated using impulse response functions over a 10-year horizon after the closure. I focus on the period between 1987 and 2020 and identify mine closures by introducing a novel longitudinal database constructed from archival maps. Results show that a persistent negative effect on mining employment is associated with a delayed and substantial negative impact on employment in industries with backward and forward linkages with the mining industry. The article contributes with a finer understanding of the transmission mechanism across the local labor markets and clarifies the need for cross-industry policies after a closure.}},
  author       = {{Dallaire-Fortier, Clara Lea}},
  issn         = {{0301-4207}},
  language     = {{eng}},
  publisher    = {{Elsevier}},
  series       = {{Resources Policy}},
  title        = {{Unemployment ripple: The impact of mine closures in Canada, 1987 to 2020}},
  url          = {{http://dx.doi.org/10.1016/j.resourpol.2024.104901}},
  doi          = {{10.1016/j.resourpol.2024.104901}},
  volume       = {{92}},
  year         = {{2024}},
}