Anti-corruption, safety compliance and coal mine deaths: Evidence from China

Abstract

This study evaluates the impact of the anti-corruption campaign launched by President Xi since 2013 on coal mine mortality in China. Combining several unique provincial-level datasets on coal mines from 2004 to 2017, we find evidence that provinces with stronger exposure to the anti-corruption campaign have experienced a significantly larger decrease in coalmine death rates. This effect survives a vast array of robustness checks and also displays great heterogeneity. Further evidence suggests the campaign has led to fewer safety violations, more fixed investments and a decrease in profits accompanied by an increase in the costs of principal business in the coal mining industry. The above findings are most consistent with the interpretation that the campaign has made coal mining firms less likely to shirk on safety by curbing collusion between coal mines and local officials. We also rule out other channels such as intensified inspection and the change of employment composition in the industry.