From wells to wealth? Government transfers and human capital

Julio Acuna, Lenin Balza () and Nicolas Gomez-Parra

Journal of Development Economics, 2024, vol. 166, issue C

Abstract: To study the causal impact of oil royalties on human capital, we exploit quasi-experimental variation arising from a law in Ecuador that prescribes an algorithm to assign oil royalties 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.

Keywords: Natural resources; Oil royalties; Transfers; Human capital; Ecuador (search for similar items in EconPapers)
JEL-codes: I25 O13 O15 Q32 Q35 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: From Wells to Wealth? Government Transfers and Human Capital (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:166:y:2024:i:c:s0304387823001621

DOI: 10.1016/j.jdeveco.2023.103206

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