The socioeconomic impact of the gold boom in Colombian mining region 1993-2005

Abstract

In this paper we are interested in investigating the local impact of gold mining activity on several socioeconomic indicators of the population in Colombia, such as the multidimensional index of poverty and the unsatisfied basic needs in the period 1993-2005. To meet this objective, we use econometric techniques; specifically, we use ordinary least squares regression and propensity score matching methods. There is evidence that before and after the gold boom, the living standard indicators of the producing municipalities are on average similar to the indicators of other municipalities that did not experience the mining boom. In conclusion, these estimates suggest that the gold boom has had a minimum impact on the quality of life of municipalities.