Effect of natural resource extraction on school performance: Evidence from Texas

Anita Schiller and Aurelie Slechten

No 411897926, Working Papers from Lancaster University Management School, Economics Department

Abstract: This study examines the effects of oil and gas extraction activities on the educational outcomes of high school students in Texas, focusing on potential variations in these impacts among different demographic groups. We use school-level data from the Texas Academic Performance Reports between 2012-2020, with school performance measured by average scores on the American College Test (ACT). The primary variable of interest is the exposure to oil and gas activities, measured by changes in oil and gas revenues within each school district. The empirical approach controls for school characteristics, and student demographics. To address endogeneity concerns, we adopt an instrumental variable approach. Although the overall impact of oil and gas operations on average school ACT scores is not statistically significant, these activities do influence the relationship between student socioeconomic status and academic achievement. Specifically, for schools situated within districts that receive substantial oil and gas revenues, a small increase in the proportion of economically disadvantaged students is associated with a substantial decline in ACT scores.

Keywords: natural resources; oil and gas activities; human capital; education (search for similar items in EconPapers)
JEL-codes: H75 I21 I24 R23 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-edu, nep-eff, nep-ene, nep-env and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:lan:wpaper:411897926

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