This paper studies how opening a new large oil extraction facility affected the labour market in Basilicata in the 1990s. Our analysis relies on administrative data on the universe of non-farm business located close to the facility and in the surrounding region, and on census data on employment in the same areas.
The investment caused a sizeable increase in average employment in the firms located in the surrounding municipalities and a small increase in the average wage per employee. Employment growth was stronger for companies located close to the facility, for those in the upstream sector, and for the largest businesses. However, the number of firms in the area decreased and total employment rose only slightly.
