IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v83y2016icp325-339.html
   My bibliography  Save this article

African Mining, Gender, and Local Employment

Author

Listed:
  • Kotsadam, Andreas
  • Tolonen, Anja

Abstract

The discovery of natural resources across the African continent brings hope for millions of poor people, but there are long-standing fears that the resources will be a curse rather than a blessing. One of the most frequently claimed effects is that gender inequality in economic opportunities may increase with mining. This paper is the first multi-country quantitative analysis of the local employment impacts for men and women of large-scale mining in the African continent. Using exact mine locations, we merge survey data for 800,000 individuals with data on all mine openings and closings across the continent, which enables a highly localized analysis of spillover effects. We employ a geographic difference-in-difference estimation exploiting the spatial and temporal variation in mining. We show that industrial mine opening is a mixed blessing for women. It triggers a local structural shift, whereby women shift from agricultural self-employment (25% decrease) to the service sector (50% increase), and are 16% more likely to earn cash. However, overall female employment decreases by 8% as agriculture is a larger sector than services. Male partners shift to skilled manual labor, and some find jobs in the mining sector. The effects of mine openings diminish with distance and are close to zero at 50km from a mine. Mine closure causes the service and skilled sectors to contract. The results are robust to a wide battery of robustness checks, such as using different measures of distance and excluding migrants from the sample. This paper shows that large-scale mining can stimulate nonagricultural sectors in Africa, although it creates local boom-bust economies with transient and gender-specific employment effects.

Suggested Citation

  • Kotsadam, Andreas & Tolonen, Anja, 2016. "African Mining, Gender, and Local Employment," World Development, Elsevier, vol. 83(C), pages 325-339.
  • Handle: RePEc:eee:wdevel:v:83:y:2016:i:c:p:325-339
    DOI: 10.1016/j.worlddev.2016.01.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X1600005X
    Download Restriction: Full text for ScienceDirect subscribers only

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

    Other versions of this item:

    References listed on IDEAS

    as
    1. Esther Duflo, 2012. "Women Empowerment and Economic Development," Journal of Economic Literature, American Economic Association, vol. 50(4), pages 1051-1079, December.
    2. Brunnschweiler, Christa N. & Bulte, Erwin H., 2008. "The resource curse revisited and revised: A tale of paradoxes and red herrings," Journal of Environmental Economics and Management, Elsevier, vol. 55(3), pages 248-264, May.
    3. Fernando M. Arag?n & Juan Pablo Rud, 2013. "Natural Resources and Local Communities: Evidence from a Peruvian Gold Mine," American Economic Journal: Economic Policy, American Economic Association, vol. 5(2), pages 1-25, May.
    4. Lucia Corno & Damien de Walque, 2012. "Mines, Migration and HIV/AIDS in Southern Africa," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 21(3), pages 465-498, June.
    5. World Bank, 2011. "Global Economic Prospects, June 2011
      [Perspectivas económicas mundiales junio de 2011 : mantener los advances en medio de la inestabilidad (Vol. 3)]
      ," World Bank Publications, The World Bank, number 12103.
    6. Bebbington, Anthony & Humphreys Bebbington, Denise & Bury, Jeffrey & Lingan, Jeannet & Muñoz, Juan Pablo & Scurrah, Martin, 2008. "Mining and Social Movements: Struggles Over Livelihood and Rural Territorial Development in the Andes," World Development, Elsevier, vol. 36(12), pages 2888-2905, December.
    7. Enrico Moretti, 2010. "Local Multipliers," American Economic Review, American Economic Association, vol. 100(2), pages 373-377, May.
    8. Jean-François Maystadt & Giacomo De Luca & Petros G. Sekeris & John Ulimwengu, 2014. "Mineral resources and conflicts in DRC: a case of ecological fallacy?," Oxford Economic Papers, Oxford University Press, vol. 66(3), pages 721-749.
    9. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Institutions and the Resource Curse," Economic Journal, Royal Economic Society, vol. 116(508), pages 1-20, January.
    10. Carl Henrik Knutsen & Andreas Kotsadam & Eivind Hammersmark Olsen & Tore Wig, 2017. "Mining and Local Corruption in Africa," American Journal of Political Science, John Wiley & Sons, vol. 61(2), pages 320-334, April.
    11. Masayuki Kudamatsu, 2012. "Has Democratization Reduced Infant Mortality In Sub-Saharan Africa? Evidence From Micro Data," Journal of the European Economic Association, European Economic Association, vol. 10(6), pages 1294-1317, December.
    12. Dan Black & Terra McKinnish & Seth Sanders, 2005. "The Economic Impact Of The Coal Boom And Bust," Economic Journal, Royal Economic Society, vol. 115(503), pages 449-476, April.
    13. Gavin Hilson & Mark Hirons & Laurent E. Cartier & Michael Bürge, 2011. "Agriculture And Artisanal Gold Mining In Sierra Leone: Alternatives Or Complements?," Journal of International Development, John Wiley & Sons, Ltd., vol. 23(8), pages 1080-1099, November.
    14. Joshua D. Angrist & Adriana D. Kugler, 2008. "Rural Windfall or a New Resource Curse? Coca, Income, and Civil Conflict in Colombia," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 191-215, May.
    15. Judith Fessehaie & Mike Morris, 2013. "Value Chain Dynamics of Chinese Copper Mining in Zambia: Enclave or Linkage Development?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 25(4), pages 537-556, September.
    16. Jonathan Isham & Michael Woolcock & Lant Pritchett & Gwen Busby, 2005. "The Varieties of Resource Experience: Natural Resource Export Structures and the Political Economy of Economic Growth," World Bank Economic Review, World Bank Group, vol. 19(2), pages 141-174.
    17. Christa N. Brunnschweiler & Erwin H. Bulte, 2009. "Natural resources and violent conflict: resource abundance, dependence, and the onset of civil wars," Oxford Economic Papers, Oxford University Press, vol. 61(4), pages 651-674, October.
    18. Francesco Caselli & Guy Michaels, 2013. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 208-238, January.
    19. Auty, Richard M., 2007. "Natural resources, capital accumulation and the resource curse," Ecological Economics, Elsevier, vol. 61(4), pages 627-634, March.
    20. Hilson, Gavin & Ackah-Baidoo, Abigail, 2011. "Can Microcredit Services Alleviate Hardship in African Small-scale Mining Communities?," World Development, Elsevier, vol. 39(7), pages 1191-1203, July.
    21. Chuhan-Pole,Punam & Dabalen,Andrew L. & Kotsadam,Andreas & Sanoh,Aly & Tolonen,Anja Karolina & Chuhan-Pole,Punam & Dabalen,Andrew L. & Kotsadam,Andreas & Sanoh,Aly & Tolonen,Anja Karolina, 2015. "The local socioeconomic effects of gold mining : evidence from Ghana," Policy Research Working Paper Series 7250, The World Bank.
    22. Arne Bigsten & Mans Söderbom, 2006. "What Have We Learned from a Decade of Manufacturing Enterprise Surveys in Africa?," World Bank Research Observer, World Bank Group, vol. 21(2), pages 241-265.
    23. Douglas Gollin & Remi Jedwab & Dietrich Vollrath, 2016. "Urbanization with and without industrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 35-70, March.
    24. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
    25. Hilson, Gavin, 2009. "Small-scale mining, poverty and economic development in sub-Saharan Africa: An overview," Resources Policy, Elsevier, vol. 34(1-2), pages 1-5.
    26. Auty, Richard M., 2001. "The political economy of resource-driven growth," European Economic Review, Elsevier, vol. 45(4-6), pages 839-846, May.
    27. Wilson, Nicholas, 2012. "Economic booms and risky sexual behavior: Evidence from Zambian copper mining cities," Journal of Health Economics, Elsevier, vol. 31(6), pages 797-812.
    28. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    29. Paul Collier & Anke Hoeffler, 2004. "Greed and grievance in civil war," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 563-595, October.
    30. Torvik, Ragnar, 2001. "Learning by doing and the Dutch disease," European Economic Review, Elsevier, vol. 45(2), pages 285-306, February.
    31. Hirons, Mark, 2014. "Shifting sand, shifting livelihoods? Reflections on a coastal gold rush in Ghana," Resources Policy, Elsevier, vol. 40(C), pages 83-89.
    32. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Cursed by Resources or Institutions?," The World Economy, Wiley Blackwell, vol. 29(8), pages 1117-1131, August.
    33. Markus Bruckner & Antonio Ciccone, 2010. "International Commodities Prices, Growth and the Outbreak of Civil War in Sub-Saharan Africa," Working Papers 1008, BBVA Bank, Economic Research Department.
    34. Hilson, Gavin, 2012. "Family Hardship and Cultural Values: Child Labor in Malian Small-Scale Gold Mining Communities," World Development, Elsevier, vol. 40(8), pages 1663-1674.
    35. Gavin Hilson & Mark Hirons & Godfried Okoh & Gavin Hilson, 2011. "Poverty And Livelihood Diversification: Exploring The Linkages Between Smallholder Farming And Artisanal Mining In Rural Ghana," Journal of International Development, John Wiley & Sons, Ltd., vol. 23(8), pages 1100-1114, November.
    36. Spiegel, Samuel J., 2012. "Governance Institutions, Resource Rights Regimes, and the Informal Mining Sector: Regulatory Complexities in Indonesia," World Development, Elsevier, vol. 40(1), pages 189-205.
    37. Frankel, Jeffrey A., 2010. "The Natural Resource Curse: A Survey," Scholarly Articles 4454156, Harvard Kennedy School of Government.
    38. Oeindrila Dube & Juan F. Vargas, 2013. "Commodity Price Shocks and Civil Conflict: Evidence from Colombia," Review of Economic Studies, Oxford University Press, vol. 80(4), pages 1384-1421.
    39. Guy Michaels, 2011. "The Long Term Consequences of Resource‐Based Specialisation," Economic Journal, Royal Economic Society, vol. 121(551), pages 31-57, March.
    40. Amoh-Gyimah, Richard & Aidoo, Eric Nimako, 2013. "Mode of transport to work by government employees in the Kumasi metropolis, Ghana," Journal of Transport Geography, Elsevier, vol. 31(C), pages 35-43.
    41. World Bank, 2012. "World Development Report 2013
      [Rapport sur le développement dans le monde 2013]
      ," World Bank Publications, The World Bank, number 11843.
    42. Jaskoski, Maiah, 2014. "Environmental Licensing and Conflict in Peru's Mining Sector: A Path-Dependent Analysis," World Development, Elsevier, vol. 64(C), pages 873-883.
    43. Enrico Moretti & Per Thulin, 2013. "Local multipliers and human capital in the United States and Sweden," Industrial and Corporate Change, Oxford University Press, vol. 22(1), pages 339-362, February.
    44. Lu, Jixia & Lora-Wainwright, Anna, 2014. "Historicizing Sustainable Livelihoods: A Pathways Approach to Lead Mining in Rural Central China," World Development, Elsevier, vol. 62(C), pages 189-200.
    45. Nicolas Berman & Mathieu Couttenier & Dominic Rohner & Mathias Thoenig, 2017. "This Mine Is Mine! How Minerals Fuel Conflicts in Africa," American Economic Review, American Economic Association, vol. 107(6), pages 1564-1610, June.
    46. Paul Collier & Anke Hoeffler, 2005. "Resource Rents, Governance, and Conflict," Journal of Conflict Resolution, Peace Science Society (International), vol. 49(4), pages 625-633, August.
    47. Markus Brückner & Antonio Ciccone, 2010. "International Commodity Prices, Growth and the Outbreak of Civil War in Sub-Saharan Africa," Economic Journal, Royal Economic Society, vol. 120(544), pages 519-534, May.
    48. Gavin Hilson & Chris Garforth, 2013. "‘Everyone Now is Concentrating on the Mining’: Drivers and Implications of Rural Economic Transition in the Eastern Region of Ghana," Journal of Development Studies, Taylor & Francis Journals, vol. 49(3), pages 348-364, March.
    49. De Luca, Giacomo & Maystadt, Jean-François & Sekeris, Petros G. & Ulimwengu, John M. & Folledo, Renato, 2012. "Mineral Resources and Conflicts in the Democratic Republic of the Congo: A Case of Ecological Fallacy:," IFPRI discussion papers 1193, International Food Policy Research Institute (IFPRI).
    50. Catherine Norman, 2009. "Rule of Law and the Resource Curse: Abundance Versus Intensity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(2), pages 183-207, June.
    51. repec:wbk:wbpubs:12098 is not listed on IDEAS
    52. Campbell, Catherine, 1997. "Migrancy, masculine identities and AIDS: The psychosocial context of HIV transmission on the South African gold mines," Social Science & Medicine, Elsevier, vol. 45(2), pages 273-281, July.
    53. Gavin Hilson & Mark Hirons & Gavin Hilson, 2011. "Artisanal Mining, Smallholder Farming And Livelihood Diversification In Rural Sub‐Saharan Africa: An Introduction," Journal of International Development, John Wiley & Sons, Ltd., vol. 23(8), pages 1031-1041, November.
    54. World Bank, 2012. "World Development Report 2012
      [Rapport sur le développement dans le monde 2012]
      ," World Bank Publications, The World Bank, number 4391.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    natural resources; female employment; Africa;

    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:wdevel:v:83:y:2016:i:c:p:325-339. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.