New economic opportunities and children outcomes: negative effects of artisanal mines on primary education

We investigate how artisanal gold mining affect household investment in primary education in Burkina Faso. Using a variety of estimation methods with primary data and secondary data, we find a significant, robust and strong negative effect of artisanal mining on primary school enrolment for boys but not for girls. We explore potential channels and find that direct involvement in mining work does not explain the results. However, children appear to substitute for their parents working in mines (or other activities that developed after the mining boom). In addition, elicited perceived returns to primary education are negatively affected by the presence of mines. Both mechanisms suggest an indirect increase in the opportunity cost of education. We find no evidence of a negative income effect or of a change in school supply which could affect the direct cost of education. Our findings suggest that artisanal mining causes negative externalities on human capital accumulation that need to be addressed if mining is to contribute to poor household livelihoods.