Mineral extraction and long‐term human capital accumulation

Abstract

AbstractThis study examines the long‐term impacts of early coal mining on human capital outcomes. Based on coal mines across 260 prefectures in late Qing China (c.1840–1912), we find that early coal mining led to a significant rise in schooling years in 2000. We trace the historical channels and show that the influence of early coal mining has persisted through and helped shape the modernization of China, which includes local industrialization and a complimentary supply of educational infrastructure. These results suggest that in contrast to other grabbing mineral extraction, inclusive coal mining systems benefit long‐term human capital accumulation and economic growth, not mining activity per se.