Impact of Mining on Socioeconomic Status in Puno, Peru

This study examines the direct and indirect effects of mining activities on key socioeconomic indicators such as per capita income, the Human Development Index (HDI), and education in the Puno region of Peru, comparing short-term (2015–2019) and long-term (2003–2029) impacts. Using a random effects panel data model and incorporating spatial autocorrelation, the study analyzes data from 2003 to 2019 to assess the effects of mining on both mining and non-mining districts. The results show that in the short term, family income per capita in mining districts increased by PEN 65.03, while non-mining districts saw an indirect increase of PEN 80.59. In the long term, the direct impact on mining districts grew to PEN 239.44, with the indirect impact on non-mining districts reaching PEN 352.30. In education, mining districts experienced a 6.74 percentage point increase in secondary education for 18-year-olds in the short term, and non-mining districts had a 5.19 percentage point increase, with both showing positive impacts. Long-term effects showed a smaller increase, with mining districts at 12.27 percentage points and non-mining districts at 9.71 percentage points. Regarding the HDI, the direct impact in mining districts in the short term was an increase of 0.02 points, with a total impact of 0.03 points, while the indirect impact on non-mining districts was minimal. In the long term, the direct impact on mining districts grew to 0.09 points, with the total impact reaching 0.10 points, while non-mining districts showed an increase of 0.10 points as well. The study concludes that mining has significant short-term impacts, particularly on income and education, but the long-term effects are more pronounced, especially for income and the HDI, with substantial indirect benefits for non-mining districts, especially in terms of income. Educational improvements stabilize over time, and mining’s overall impact on the HDI increases as its economic and social effects deepen.