3 - Resource Extraction and Victimization of Labor

Summary

In contrast to the benefits that capital enjoys, Chapter 3 shows in detail the largely negative impacts of mineral extraction on labor. Based on qualitative evidence on the working conditions and employment opportunties in mining industries, it reveals that resource boom in general does not benefit common citizens as the labor force. Moreover, mining industries generate various negative externalities to local communities, which impose heavy financial and health costs on local citizens. Statistical analysis corroborates the empirical observations and shows that resource abundance diminishes employment opportunities in not only high-tech but also labor-intensive industrial sectors and represses labor income in both urban and rural areas. The findings suggest that the resource sector can be characterized as pro-capital and anti-labor, which generates profound implications for social equality and stability.