Oil boom, rent sharing, job prospects and human capital investment: Evidence from Chad
Mahamat Moustapha
Energy Economics, 2024, vol. 133, issue C
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.
Keywords: Oil boom; Labor market; Education; Economic development; Africa; Chad (search for similar items in EconPapers)
JEL-codes: I25 J08 N37 Q33 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:133:y:2024:i:c:s0140988324002445
DOI: 10.1016/j.eneco.2024.107536
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