The Socio-Economic Impact of Coal Mining in Mozambique

Abstract

This study assesses the impact of four coal mines in Mozambique on socio-economic outcomes of the local population. We combine four waves of household surveys with coal mine locations and employ a difference-in-differences model. The timing of the surveys allows us to control for pre-trends and differentiate between the effects during the investment and production periods. The mines led to a causal increase in consumption and a correlational decline in poverty. The mine introduced higher-paying jobs, often obtained by women, which shifted them from agriculture and unpaid work to the mining, service sectors and wage work. This shift impacted family labour dynamics, in particular young males and to a lesser extent young females worked less. The decrease in child labour reduced overall employment. Access to basic services, such as drinking water, electricity and health services, improved. Primary education completion rates increased, while children's schooling was unaffected. Negative consequences were found related to the incidence of sickness and a decline in market access.