New Economic Opportunities and Children’s Outcomes: Negative Effects of Artisanal Mines on Primary Education

Abstract We investigate how artisanal gold mining affects household investment in primary education in Burkina Faso. Relying mostly on difference-in-difference estimations with both primary and secondary data, we find a significant, robust, and strong negative effect of artisanal mining on primary school enrolment for boys but not for girls. We explore potential channels and find that direct involvement in mining work does not explain the results. However, children appear to substitute for their parents working in mines (or other activities that developed after the mining boom). In addition, elicited perceived returns to primary education are negatively affected by the presence of mines. Both mechanisms suggest an indirect increase in the opportunity cost of education. We find no evidence of a negative income effect or of a change in school supply which could affect the direct cost of education. Our findings suggest that artisanal mining causes negative externalities on human capital accumulation that need to be addressed if mining is to contribute to poor household livelihoods.