From Wells to Wealth? Government Transfers and Human Capital

Julio Acuna, Lenin Balza () and Nicolás Gómez Parra

No 12233, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: To study the causal impact of oil royalties on human capital, we exploit quasi-experimental variation arising from a law in Ecuador that transfers resources to municipalities regardless of their oil-producing status. We find that royalties increase the likelihood of students completing primary and secondary education. Students reaching high school are also more likely to pass and excel on the exit exam. Furthermore, schools are more likely to remain open, increase their size, and become more road-accessible. However, the likelihood of students pursuing higher education decreases as they face steeper opportunity costs when labor demand increases.

JEL-codes: I25 O13 O15 Q32 Q35 (search for similar items in EconPapers)
Date: 2022-05
New Economics Papers: this item is included in nep-ene and nep-ure
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Journal Article: From wells to wealth? Government transfers and human capital (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:12233

DOI: 10.18235/0004262

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