IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v133y2024ics0140988324002445.html
   My bibliography  Save this article

Oil boom, rent sharing, job prospects and human capital investment: Evidence from Chad

Author

Listed:
  • Moustapha, Mahamat

Abstract

A large body of literature shows that the drop in educational attainment resulting from the resource boom is one of the major drivers of the so-called resource curse. This paper explores how upstream actions can avoid this resource curse and promote human capital development at the local level. Specifically, I examine how a rent-sharing model and the employment opportunities induced by an oil boom for native populations affect secondary education decisions in Chad’s oil region. Using a synthetic control method, I find that these measures increased secondary school attendance in the region. Similar results were obtained using a difference-in-differences approach. In terms of mechanisms, the results show that labor market opportunities and regulations were more effective in promoting investment in education than the rent-sharing model. Finally, I note that these measures reduced dropouts rather than increasing attendance at all levels.

Suggested Citation

  • Moustapha, Mahamat, 2024. "Oil boom, rent sharing, job prospects and human capital investment: Evidence from Chad," Energy Economics, Elsevier, vol. 133(C).
    • Handle: RePEc:eee:eneeco:v:133:y:2024:i:c:s0140988324002445
    DOI: 10.1016/j.eneco.2024.107536
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988324002445
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2024.107536?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Katja Maria Kaufmann, 2014. "Understanding the income gradient in college attendance in Mexico: The role of heterogeneity in expected returns," Quantitative Economics, Econometric Society, vol. 5(3), pages 583-630, November.
    2. Xavier Sala-i-Martin & Arvind Subramanian, 2013. "Addressing the Natural Resource Curse: An Illustration from Nigeria," Journal of African Economies, Centre for the Study of African Economies, vol. 22(4), pages 570-615, August.
    3. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    4. Gylfason, Thorvaldur, 2001. "Natural resources, education, and economic development," European Economic Review, Elsevier, vol. 45(4-6), pages 847-859, May.
    5. Bevan, David & Collier, Paul & Gunning, Jan Willem, 1999. "The Political Economy of Poverty, Equity, and Growth: Nigeria and Indonesia," OUP Catalogue, Oxford University Press, number 9780195209860.
    6. Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Clark, Jeremy, 2017. "The evolution of the natural resource curse thesis: A critical literature survey," Resources Policy, Elsevier, vol. 51(C), pages 123-134.
    7. Rickman, Dan S. & Wang, Hongbo & Winters, John V., 2017. "Is shale development drilling holes in the human capital pipeline?," Energy Economics, Elsevier, vol. 62(C), pages 283-290.
    8. Susan Athey & Guido W. Imbens, 2017. "The State of Applied Econometrics: Causality and Policy Evaluation," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 3-32, Spring.
    9. Gary S. Becker, 1964. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, First Edition," NBER Books, National Bureau of Economic Research, Inc, number beck-5.
    10. Waqar Ahmed Wadho, 2014. "Education, Rent seeking and the Curse of Natural Resources," Economics and Politics, Wiley Blackwell, vol. 26(1), pages 128-156, March.
    11. J. Vernon Henderson & Adam Storeygard & David N. Weil, 2012. "Measuring Economic Growth from Outer Space," American Economic Review, American Economic Association, vol. 102(2), pages 994-1028, April.
    12. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    13. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    14. Maxim Pinkovskiy & Xavier Sala-i-Martin, 2016. "Newer Need Not be Better: Evaluating the Penn World Tables and the World Development Indicators Using Nighttime Lights," NBER Working Papers 22216, National Bureau of Economic Research, Inc.
    15. Elizabeth U. Cascio & Ayushi Narayan, 2022. "Who Needs a Fracking Education? The Educational Response to Low-Skill-Biased Technological Change," ILR Review, Cornell University, ILR School, vol. 75(1), pages 56-89, January.
    16. Auty, Richard M., 2001. "The political economy of resource-driven growth," European Economic Review, Elsevier, vol. 45(4-6), pages 839-846, May.
    17. Anil Kumar, 2017. "Impact of oil booms and busts on human capital investment in the USA," Empirical Economics, Springer, vol. 52(3), pages 1089-1114, May.
    18. Zuo, Na & Schieffer, Jack & Buck, Steven, 2019. "The effect of the oil and gas boom on schooling decisions in the U.S," Resource and Energy Economics, Elsevier, vol. 55(C), pages 1-23.
    19. Maxim Pinkovskiy & Xavier Sala-i-Martin, 2016. "Lights, Camera … Income! Illuminating the National Accounts-Household Surveys Debate," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(2), pages 579-631.
    20. Keola, Souknilanh & Andersson, Magnus & Hall, Ola, 2015. "Monitoring Economic Development from Space: Using Nighttime Light and Land Cover Data to Measure Economic Growth," World Development, Elsevier, vol. 66(C), pages 322-334.
    21. Robert Jensen, 2010. "The (Perceived) Returns to Education and the Demand for Schooling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(2), pages 515-548.
    22. Nikola Kojucharov, 2007. "Poverty, Petroleum & Policy Intervention: Lessons from the Chad-Cameroon Pipeline," Review of African Political Economy, Taylor & Francis Journals, vol. 34(113), pages 477-496, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michieka, Nyakundi M. & Gearhart, Richard S., 2018. "Resource curse? The case of Kern County," Resources Policy, Elsevier, vol. 59(C), pages 446-459.
    2. Waqar Wadho & Sadia Hussain, 2023. "Ethnic diversity, concentration of political power and the curse of natural resources," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 113-137, April.
    3. Corral, Leonardo R. & Schling, Maja, 2017. "The impact of shoreline stabilization on economic growth in small island developing states," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 210-228.
    4. Guan, Jialin & Kirikkaleli, Dervis & Bibi, Ayesha & Zhang, Weike, 2020. "Natural resources rents nexus with financial development in the presence of globalization: Is the “resource curse” exist or myth?," Resources Policy, Elsevier, vol. 66(C).
    5. Akwasi Ampofo, 2021. "Oil at work: natural resource effects on household well-being in Ghana," Empirical Economics, Springer, vol. 60(2), pages 1013-1058, February.
    6. Waqar Ahmed Wadho, 2014. "Education, Rent seeking and the Curse of Natural Resources," Economics and Politics, Wiley Blackwell, vol. 26(1), pages 128-156, March.
    7. Khan, Zeeshan & Hussain, Muzzammil & Shahbaz, Muhammad & Yang, Siqun & Jiao, Zhilun, 2020. "Natural resource abundance, technological innovation, and human capital nexus with financial development: A case study of China," Resources Policy, Elsevier, vol. 65(C).
    8. Verme, Paolo & Schuettler, Kirsten, 2021. "The impact of forced displacement on host communities: A review of the empirical literature in economics," Journal of Development Economics, Elsevier, vol. 150(C).
    9. Clovis Wendji Miamo & Elvis Dze Achuo, 2022. "Can the resource curse be avoided? An empirical examination of the nexus between crude oil price and economic growth," SN Business & Economics, Springer, vol. 2(1), pages 1-23, January.
    10. Smith, Brock, 2015. "The resource curse exorcised: Evidence from a panel of countries," Journal of Development Economics, Elsevier, vol. 116(C), pages 57-73.
    11. Rickman, Dan S. & Wang, Hongbo & Winters, John V., 2017. "Is shale development drilling holes in the human capital pipeline?," Energy Economics, Elsevier, vol. 62(C), pages 283-290.
    12. Zuo, Na & Schieffer, Jack & Buck, Steven, 2019. "The effect of the oil and gas boom on schooling decisions in the U.S," Resource and Energy Economics, Elsevier, vol. 55(C), pages 1-23.
    13. Adhvaryu, Achyuta & Fenske, James & Khanna, Gaurav & Nyshadham, Anant, 2021. "Resources, conflict, and economic development in Africa," Journal of Development Economics, Elsevier, vol. 149(C).
    14. Leonardo Corral & Maja Schling & Cassandra Rogers & Janice Cumberbatch & Fabian Hinds & Naijun Zhou & Michele H. Lemay, 2016. "The Impact of Coastal Infrastructure Improvements on Economic Growth: Evidence from Barbados," IDB Publications (Working Papers) 95978, Inter-American Development Bank.
    15. Bonilla Mejía, Leonardo, 2020. "Mining and human capital accumulation: Evidence from the Colombian gold rush," Journal of Development Economics, Elsevier, vol. 145(C).
    16. Maurer, Stephan E., 2018. "Oil discoveries and education spending in the postbellum south," LSE Research Online Documents on Economics 88677, London School of Economics and Political Science, LSE Library.
    17. Rickman, Dan & Wang, Hongbo, 2020. "What goes up must come down? The recent economic cycles of the four most oil and gas dominated states in the US," Energy Economics, Elsevier, vol. 86(C).
    18. Nchofoung, Tii N. & Achuo, Elvis Dze & Asongu, Simplice A., 2021. "Resource rents and inclusive human development in developing countries," Resources Policy, Elsevier, vol. 74(C).
    19. Alssadek, Marwan & Benhin, James, 2023. "Natural resource curse: A literature survey and comparative assessment of regional groupings of oil-rich countries," Resources Policy, Elsevier, vol. 84(C).
    20. Oduyemi, Gabriel Olusegun & Owoeye, Taiwo & Adekoya, Oluwasegun Babatunde, 2021. "Health outcomes and the resource curse paradox: The experience of African oil-rich countries," Resources Policy, Elsevier, vol. 73(C).

    More about this item

    Keywords

    Oil boom; Labor market; Education; Economic development; Africa; Chad;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • N37 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Africa; Oceania
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:133:y:2024:i:c:s0140988324002445. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.