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The European coal curse

Elena Esposito and Scott F. Abramson
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Scott F. Abramson: University of Rochester

Journal of Economic Growth, 2021, vol. 26, issue 1, No 3, 77-112

Abstract: Abstract In this paper we examine the impact of natural resource wealth by focusing on historical coal-mining across European regions. As an exogenous source of variation in coal extraction activities, we rely on the presence of coal-deposits located on the earth’s surface, which historically facilitated the discovery and extraction of coal. Our results show that former coal-mining regions are substantially poorer, with (at least) 10% smaller per-capita GDP than comparable regions in the same country that did not mine coal. We provide evidence that much of this lag is explained by lower levels of human capital accumulation and that this human-capital effect is concentrated in men. Finally, we provide suggestive evidence that the persistently lower levels of human capital in coal mining regions that we document result from the crystallization of negative attitudes towards education and lower future orientations in these regions.

Keywords: Mines; Coal; Resources; Minerals; Resource curse; Universities; Human capital; Long-run development; Gender gap; Male achievement gap (search for similar items in EconPapers)
JEL-codes: I25 N13 O10 O13 Q35 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (12)

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DOI: 10.1007/s10887-021-09187-w

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