The impact of the mining industry, and its recent functional and spatial fragmentation, on regional labor market performance: The case of Antofagasta

Since 1990s, significant transformations have occurred in the mining industry, resulting in functional and spatial fragmentation that have impacted the operational dynamics in the territories from which minerals are extracted. Despite the significant impact of these transformations on the local labor market equilibrium, there is limited knowledge about their effects on the employment and labor conditions of local workers. I aim to fill this gap by investigating the case of Antofagasta in Chile, the world's leading copper producing region. The recent transformations in the mining industry there have resulted in an increase in the number of workers commuting long distances, as well as the emergence of local suppliers providing mid- to low-quality services to the extractive sector, both of which have the potential to impact the industry's embeddedness and influence on the local economy and labor market. Although this research is focused on Antofagasta, the findings can be extrapolated to similar mining regions worldwide, such as those in Canada, Australia, and Russia. I demonstrate that the recent transformations within the mining industry significantly impact the labor conditions of local workers, and the region's susceptibility to copper price fluctuations, thereby limiting sustained and long-term socio-economic development in Antofagasta.