Commodity Price Boom and Copper mines in Chile: The assessment of local spillover effects on the labor market.
Sammanfattning: Chile has been benefited from a commodity boom in the copper industry during the first decade of the 21st century. Does a mineral boom increase local labour opportunities? Can women get benefit from a resource boom? Can the mineral boom have indirect effects in non-mining sectors? The present paper attempts to explore and measure the impact of an exogenous increase in copper global prices between 2003 and 2011, on Chilean labor market, with a particular focus on gender disparities. To do that, I exploit the temporal and spatial variation of the raise in copper production, that differ between Chilean communes. For the discussion of the results, I employed the framework of local labor demand shocks on tradable sectors and its multipliers effect explained by Moretti (2011). The results obtained by Linear Probability Models show a reduction on the overall probability of working for women living in communes with at least one active copper mine after the boom in copper. By exploring the impact of the copper boom on the probability of working in different occupations, it is suggested that the local multipliers effect from the resource boom are weak in women labor markets.
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