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  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund

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© 2022 International Monetary Fund

WP/22/160

IMF Working Paper

African Department and Fiscal Affairs Department

Is Education Neglected in Natural Resources-Rich Countries? An Intergenerational Approach in Africa

Prepared by Jean-Marc B. Atsebi, Rasmane Ouedraogo, Regina S. Séri*

Authorized for distribution by Amadou Sy

July 2022

IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

ABSTRACT: The literature on the effects of natural resources on education is mixed and inconclusive. In this paper, we adopt an innovative approach by exploring the effects of mineral discoveries and productions on intergenerational educational mobility (IM), linking parents to the children education levels for more than 14 million individuals across 28 African countries and 2,890 districts. We find that mineral discoveries and productions positively affect educational IM for primary education in Africa for individuals exposed to the mineral sites and living in districts with discoveries. Specifically, the probability of upward primary IM increases by 2.7 percentage points (pp.) following mineral discoveries and 6.7 pp. following mineral productions. Downward primary IM decreases by 1.2 pp. following both mineral discoveries and productions. These positive effects are increasing for individuals born later after discoveries and productions, for males, and individuals living in the urban area. However, no significant effects are found for secondary and tertiary educational IM. Finally, we explore the income and returns to education channels through which mineral discoveries and productions affect educational IM.

RECOMMENDED CITATION: Atsebi, J. M. B., Ouedraogo, R. & Seri, R. S. (2022). Is Education Neglected in Natural Resources-Rich Countries? An Intergenerational Approach in Africa, IMF Working Paper, WP/22/160

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Title Page

WORKING PAPERS

Is Education Neglected in Natural Resources-Rich Countries? An Intergenerational Approach in Africa

Jean-Marc B. Atsebi, Rasmane Ouedraogo, Regina S. Séri1

Contents

  • Contents

  • I. Introduction

  • II. Review of literature

    • A. General effects of natural resources

    • B. Natural resources and education

    • C. Intergenerational mobility in education and its determinants

  • III. Data sources and IM index

    • A. Data sources

    • B. Construction of educational IM

    • C. Cohabitation-selection issues

    • D. Stylized facts on educational IM in Africa

  • IV. Stylized facts on educational IM and mineral discoveries and production

  • V. Empirical methodology

  • VI. Results

    • A. Baseline results

    • B. Dynamic effects of mineral discoveries and productions on educational IM

  • VII. Transmission channels

    • A. Income channel: parents working in mining sector

    • B. Returns to education: Wealth index and LIDO score

  • VIII. Robustness checks

    • A. Use of alternative control groups (only countries/districts with discoveries)

    • B. Use of alternative structures of fixed effects and time variable

    • C. Use of alternative time window around the mineral discoveries or productions

    • D. Use of alternative time exposition to the mineral discoveries or productions

    • E. Use of alternative IM definitions

    • F. Use of all mineral discoveries and productions

    • G. Use of conflicts as additional control variables

  • IX. Sensitivity

    • A. Depending on the African regions

    • B. Depending on the size of mineral discoveries

    • C. Depending on the gender

    • D. Depending on the urban-rural living area

  • X. Conclusion and Policy implications

  • References

  • Annexes

    • A. Sample

    • B. Summary statistics of Educational IM

    • C. Additional stylized facts on mineral discoveries

    • D. Additional stylized facts on country-level educational IM

    • E. Additional stylized facts on district-level educational IM

    • F. Baseline results with control variables

    • G. Validation of LIDO score and Wealth Index

*

Jean-Marc B. Atsebi is economist at the Fiscal Affairs Department of the IMF, Rasmane Ouedraogo is IMF Resident Representative for Niger, Regina S. Séri is PhD Candidate at the University Clermont Auvergne – CERDI. The authors are grateful to Théophile Azomahou, Simone Bertoli, Antonio David, Mahamady Ouedraogo, Amadou Sy for their insightful comments and suggestions. The authors would also like to thank seminar participants at the IMF and at the CERDI. Any views expressed are only those of the authors and do not represent the views of the IMF, its Executive Board or IMF management.

1

Jean-Marc B. Atsebi is economist at the Fiscal Affairs Department of the IMF, Rasmane Ouedraogo is IMF Resident Representative for Niger, Regina S. Séri is PhD Candidate at the University Clermont Auvergne – CERDI. The authors are grateful to Théophile Azomahou, Simone Bertoli, Antonio David, Mahamady Ouedraogo, Amadou Sy for their insightful comments and suggestions. The authors would also like to thank seminar participants at the IMF and at the CERDI. Any views expressed are only those of the authors and do not represent the views of the IMF, its Executive Board or IMF management.

Is Education Neglected in Natural Resources-Rich Countries? An Intergenerational Approach in Africa
Author: Jean-Marc B. Atsebi, Rasmané Ouedraogo, and Regina S. Séri