Arbeitspapier

The Value of Redistribution: Natural Resources and the Formation of Human Capital under Weak Institutions

We exploit time and spatial variation generated by the commodities boom to measure the effect of natural resources on human capital formation in Peru, a country with low governance indicators. Combining test scores from over two million students and district-level administrative data on mining production and the redistribution of mining taxes to local governments, we find no effect from production. However, redistribution of mining taxes increases math test scores by 0.23 standard deviations. We identify the improvements in the quality of teachers and in school infrastructure, together with increases in adult employment and health outcomes of adults and children, as key mechanisms from the redistribution. Policy implications for the avoidance of the natural resource curse are discussed.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 10884

Klassifikation
Wirtschaft
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Education and Economic Development
Economic Development: Human Resources; Human Development; Income Distribution; Migration
Exhaustible Resources and Economic Development
Thema
resource booms
academic achievement
intergovernmental transfers

Ereignis
Geistige Schöpfung
(wer)
Agüero, Jorge M.
Balcázar, Carlos Felipe
Maldonado, Stanislao
Nopo, Hugo R.
Ereignis
Veröffentlichung
(wer)
Institute of Labor Economics (IZA)
(wo)
Bonn
(wann)
2017

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
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Objekttyp

  • Arbeitspapier

Beteiligte

  • Agüero, Jorge M.
  • Balcázar, Carlos Felipe
  • Maldonado, Stanislao
  • Nopo, Hugo R.
  • Institute of Labor Economics (IZA)

Entstanden

  • 2017

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