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Using different definitions of relations to the Norwegian oil and gas (OG) industry along spatial and occupational dimensions by combining education and industry affiliation, and large changes at high levels of OG investments in the estimation period 2008–13, we identify wage spillovers from the OG industry interpreted as cost of living and demand effects. We use micro data covering all individual workers in Norway in this period, in total more than 11 million observations. After controlling for relevant individual and market related characteristics, we draw three main on conclusions. First, the OG industry generate wage spillovers to other sectors depending consistently on occupational and spatial relations to the OG industry. The wage distribution related to the OG industry seems persistent but spillovers are smaller as compared to those from the OG establishing period 1970–82, and we offer three explanations for this: Coordinated wage setting, immigration and use of micro data. Second, traded goods industry is affected but not to such an extent as non-traded industries. Third, the channel of spillovers is industry affiliation and not education, which is consistent with the Norwegian system of wage formation.
