Artisanal small-scale mining, farm labour attraction and household welfare in Ghana

Abstract

The discourse on the impact of artisanal small-scale mining (ASM) has often concentrated on land degradation, and surface water pollution. How ASM is increasingly attracting farm labourers (FL) in mining communities is rarely discussed. Drawing insight from selected mining communities, which combines the perspectives and experiences of small-scale miners, farmers, academics, and policymakers, this article uses the endogenous switching regression model to identify the determinants of FL attraction to ASM as well as the drivers of labour welfare. The model estimated the impact of labour supply on consumption expenditure per adult equivalent. The results show that FL decision to shift to ASM sector is constructed around welfare incentives. For instance, FL who joined ASM increased their consumption expenditure per adult equivalent by 66.6 percent. The article established that ASM provides crucial livelihoods to rural households. Meanwhile, if proper incentives such as fertilizer subsidy and agriculture extension intensification are not put in place, the labour attraction by ASM will have detrimental effects on food security. Therefore, proper regulatory frameworks should be enforced by duty-bearers to regulate the activities of ASM as it provides welfare improvements to farmers. Lastly, further studies should investigate the decency of labour supply services to ASM.