Home > The impact of mining taxes on public education: evidence for mining municipalities in Chile

The impact of mining taxes on public education: evidence for mining municipalities in Chile

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Resumen Paper

Fecha

2017

 

 

AUTORES

Mauricio Oyarzo1 y Dusan Paredes2.

1. Universidad Católica del Norte, moyarzo@ucn.cl.
2. Universidad Católica del Norte, dparedes@ucn.cl.

 

Resumen

Chilean mining municipalities collect a mineral tax to compensate the negative externalities associated with resource extraction. This collection implies a positive marginal impact on local finance to improve the quality of life in the mining communities. However, there is not enough empirical evidence to support this causal mechanism. This article contributes to cover this knowledge gap with a unique experimental framework proposed by the Chilean tax system. In particular, mining law indicates that municipalities above an exogenous threshold are able to keep this extra income. We use this Regression Discontinuity Design to identify the causal effect in public education indicators of the mining communities. Our results show that the mining communities these have a worse educational performance. In addition, the levels of investment in public education are not significant, which accounts for the disadvantaged position in relation to the high dependence on extractive activities.

Keywords: Public education; Mining taxes; Public education; Local governments.

 

Participación en sesión: Estudios regionales.