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The Socio-Economic Impact of Coal Mining in Mozambique

2024/05/30 by Eva‐Maria Egger, Michael Keller, Jorge Mouco · 1 voice
Engineering · Social Sciences · Economics, Econometrics and Finance · #Mining and Resource Management #Hydropower, Displacement, Environmental Impact #Natural Resources and Economic Development

paper · doi:10.1093/jae/ejae006

openalex publication_date 2024/05/30 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/29

Abstract

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.

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