Natural resources, redistribution and Human capital formation

How do resource booms affect human capital accumulation? We exploit time and spatial variation generated by the commodity boom across local governments in Peru to measure the effect of natural resources on human capital formation. We explore the effect of both mining production and tax revenues on t...

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Autores:
Tipo de recurso:
Fecha de publicación:
2016
Institución:
Universidad del Rosario
Repositorio:
Repositorio EdocUR - U. Rosario
Idioma:
spa
OAI Identifier:
oai:repository.urosario.edu.co:10336/12045
Acceso en línea:
https://doi.org/10.48713/10336_12045
http://repository.urosario.edu.co/handle/10336/12045
Palabra clave:
Economía
H23
I25
O15
Resource booms
academic achievemen
intergovernmental transfers
Economía
Recursos naturales::Aspectos Económicos
Capital humano::Aspectos Económicos
Minas::Aspectos Económicos
Medio ambiente
Rights
License
http://creativecommons.org/licenses/by-nc-nd/2.5/co/
Description
Summary:How do resource booms affect human capital accumulation? We exploit time and spatial variation generated by the commodity boom across local governments in Peru to measure the effect of natural resources on human capital formation. We explore the effect of both mining production and tax revenues on test scores, finding a substantial and statistically significant effect for the latter. Transfers to local governments from mining tax revenues are linked to an increase in math test scores of around 0.23 standard deviations. We find that the hiring of permanent teachers as well as the increases in parental employment and improvements in health outcomes of adults and children are plausible mechanisms for such large effect on learning. These findings suggest that redistributive policies could facilitate the accumulation of human capital in resource abundant developing countries as a way to avoid the natural resources curse.