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Industrial versus artisanal mining: The effects on local employment in Liberia

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  • Melanie Gräser

    (Department of Economics, Vienna University of Economics and Business)

Abstract

Using novel data on industrial, semi-industrial, and artisanal mining, this paper analyses the impact of different mining types on employment outcomes for individuals living close to mines in Liberia. The econometric strategy exploits the temporal variation in mine openings and closings and the spatial variation in mine locations in a difference-in-difference analysis. Primary data collected through qualitative interviews at mining sites explains the mechanisms behind the econometric results. The findings provide the first causal evidence on employment effects of a boom-and-bust cycle of artisanal mining. A boom seems to shift employment from subsistence agriculture to more productive sectors and a bust decreases the likelihood for individuals to work. In contrast, the opening of industrial gold mines seems to decrease employment in more productive sectors and increase employment in agriculture, while industrial iron ore mines have no effect. This paper shows that benefits of mining for the local population depend on the type of mining, the commodities mined, and the local boom-bust cycle of mining.

Suggested Citation

  • Melanie Gräser, 2023. "Industrial versus artisanal mining: The effects on local employment in Liberia," Department of Economics Working Papers wuwp341, Vienna University of Economics and Business, Department of Economics.
    • Handle: RePEc:wiw:wiwwuw:wuwp341
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    References listed on IDEAS

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    More about this item

    Keywords

    Natural resources; extractive industries; Liberia; industrial mining; artisanal mining;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

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