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Oil boom, rent sharing, job prospects and human capital investment: Evidence from Chad

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  • Moustapha, Mahamat

Abstract

A large body of literature shows that the drop in educational attainment resulting from the resource boom is one of the major drivers of the so-called resource curse. This paper explores how upstream actions can avoid this resource curse and promote human capital development at the local level. Specifically, I examine how a rent-sharing model and the employment opportunities induced by an oil boom for native populations affect secondary education decisions in Chad’s oil region. Using a synthetic control method, I find that these measures increased secondary school attendance in the region. Similar results were obtained using a difference-in-differences approach. In terms of mechanisms, the results show that labor market opportunities and regulations were more effective in promoting investment in education than the rent-sharing model. Finally, I note that these measures reduced dropouts rather than increasing attendance at all levels.

Suggested Citation

  • Moustapha, Mahamat, 2024. "Oil boom, rent sharing, job prospects and human capital investment: Evidence from Chad," Energy Economics, Elsevier, vol. 133(C).
    • Handle: RePEc:eee:eneeco:v:133:y:2024:i:c:s0140988324002445
    DOI: 10.1016/j.eneco.2024.107536
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    More about this item

    Keywords

    Oil boom; Labor market; Education; Economic development; Africa; Chad;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • N37 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Africa; Oceania
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

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