In this paper, we use administrative data on mine activity and employment to measure the impact of coal mine closures on local economic outcomes. Using difference-in-differences, we find these closures significantly increased local unemployment and reduced jobs, wages, and output. We estimate a job loss multiplier of 2.0 — substantially higher than in previous busts — likely driven by a rising local wage premium that amplified the impact of each lost mining job on the broader regional economy.
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The Local Economic Impact of Coal Mine Closures
June 2026
WP 26-30 – Falling natural gas prices amid the shale boom triggered a sharp decline in U.S. coal production, with over half of Appalachian mines shuttering between 2011 and 2016.