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Oil and ethnic inequality in Nigeria

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  • James Fenske
  • Igor Zurimendi

Abstract

Oil prices experienced in early life predict differential adult outcomes across Nigerian ethnic groups. Our difference-in-difference approach compares members of southern ethnicities to other Nigerians from the same birth cohort. Greater prices in a southern individual’s birth year predict positive relative outcomes, including reduced fertility, delayed marriage, higher probabilities of working and having a skilled occupation, and greater schooling. By contrast, health outcomes suffer, including reduced height and increased BMI. These microeconomic impacts can be explained by macroeconomic responses to greater oil prices. Relative Southern incomes increase, food production declines, maternal labor intensifies, and Southern conflict rises.

Suggested Citation

  • James Fenske & Igor Zurimendi, 2015. "Oil and ethnic inequality in Nigeria," CSAE Working Paper Series 2015-02, Centre for the Study of African Economies, University of Oxford.
    • Handle: RePEc:csa:wpaper:2015-02
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    Keywords

    Commodity prices; conflict; early life; ethnicity; Nigeria;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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