Economic implications of long distance commuting in the Chilean mining industry

More than 10% of the labor force that works in Antofagasta lives in other regions, commuting on average more than 800 km in a shift system that allows working several days in a row followed by several days off. The mining industry is the main contractor of such workers and the impact of the process spreads through the rest of the Chilean territory.Using an input–output approach, this paper shows that a significant amount of resources generated by the mining industries in the Region of Antofagasta goes to other regions in wages earned by commuters who have decided to work in this region but live in another. The commuting process seems to be driven by centripetal forces that support centralization, thus arguing for regional policies to promote the attractiveness of the peripheral regions.

► Long-distance commuting spreads the mining activity benefits to other regions in Chile. ► Neighboring regions get 30% of the benefits from sending mining commuters to mining regions. ► Main regions get over 60% of the benefits from sending mining commuters to mining regions. ► In Chile, long distance commuting related to mining activity is promoting concentration. ► Reducing regional disparities policies should consider the impact of commuting among regions.