Working Paper
The socioeconomic impact of coal mining in Mozambique

This study assesses the impact of four coal mines in Mozambique on the socioeconomic outcomes of the local population. We combine four waves of household surveys with coal mine locations data and employ a difference-in-difference model. The timing of the surveys allows us to control for pre-trends and to differentiate between the effects during the investment and production periods.

The mines led to an increase in consumption and a decline in poverty, because of workers moving out of agriculture into higher-paid jobs in the mining and service sectors. This effect is especially strong for women, who gained wage jobs and reduced unpaid family work. 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, which may be related to resettling programmes.