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The long-term effect of resource booms on human capital

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  • Mosquera, Roberto

Abstract

Resource booms may reduce human capital accumulation. They can increase the opportunity costs of education by favoring low-skilled jobs, thus making it optimal for individuals to interrupt their education. This study uses proprietary individual-level data to study the long-term effects of an oil boom on human capital in a developing country. Exploiting variation in the timing of the shock and geographic differences in the effect of exposure to the boom, I find that exposure to the boom decreased college completion, increased low-skill employment, and had limited long-term effects on wealth accumulation.

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  • Mosquera, Roberto, 2022. "The long-term effect of resource booms on human capital," Labour Economics, Elsevier, vol. 74(C).
    • Handle: RePEc:eee:labeco:v:74:y:2022:i:c:s0927537121001251
    DOI: 10.1016/j.labeco.2021.102090
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    More about this item

    Keywords

    Resource booms; Development; Long-term effects; Completed education;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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