We exploit time and spatial variation generated by the commodity boom in Peru to measure the effect of natural resources on human capital formation. Combining data from over two million students’ test scores and district-level administrative information on mining production and local redistribution of tax revenues, we find no effect from production. However, transfers increase math test scores by 0.23 standard deviations. We identify the hiring of teachers, improvements in school infrastructure together with increases in adult employment and health outcomes of adults and children, as key mechanisms. Policy implications for the avoidance of the natural resource curse are discussed.*
*La conferencia se realizará en español.