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The Long-Run Labor-Market Consequences of Civil War: Evidence from the Shining Path in Peru

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  • Jose Galdo

Abstract

This study exploits district-level variation in the timing and intensity of civil war violence to investigate whether early life exposure to civil wars affects labor-market outcomes later in life. In particular, we examine the impacts of armed conflict in Peru, a country that experienced the actions of a tenacious, brutally effective war machine, the Shining Path, between 1980 and 1995. This study finds that the most sensitive period to early life exposure to civil war violence is the first 36 months of life. A 1 standard deviation increase in civil war exposure leads to a 5% fall in adult monthly earnings, 3.5% reduction in the probability of working in formal jobs, and 6% reduction in the probability of working in large firms. Substantial heterogeneity in the earnings impacts emerges when considering variation in the type of civil war violence. Overall, forced disappearances emerge as the most hurtful measure of violence in the long run. Sexual violations disproportionately affected the wages of women, while torture and forced disappearances disproportionately affected the wages of men. Evidence on intervening pathways suggests that short-run health along with schooling and household wealth are important channels in connecting early life exposure to civil war and adult earnings.

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File URL: http://www.jstor.org/stable/full/10.1086/670379
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Bibliographic Info

Article provided by University of Chicago Press in its journal Economic Development and Cultural Change.

Volume (Year): 61 (2013)
Issue (Month): 4 ()
Pages: 789 - 823

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Handle: RePEc:ucp:ecdecc:doi:10.1086/670379

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  1. Pl mper, Thomas & Neumayer, Eric, 2006. "The Unequal Burden of War: The Effect of Armed Conflict on the Gender Gap in Life Expectancy," International Organization, Cambridge University Press, vol. 60(03), pages 723-754, July.
  2. Akresh, Richard & de Walque, Damien, 2008. "Armed conflict and schooling : evidence from the 1994 Rwandan genocide," Policy Research Working Paper Series 4606, The World Bank.
  3. Filmer, Deon & Pritchett, Lant, 1998. "Estimating wealth effects without expenditure data - or tears : with an application to educational enrollments in states of India," Policy Research Working Paper Series 1994, The World Bank.
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Cited by:
  1. Silvio Rendon, 2012. "A Discrete Choice Approach to Estimating Armed Conflicts’ Casualties: Revisiting the Numbers of a ‘Truth Commission’," Department of Economics Working Papers 12-03, Stony Brook University, Department of Economics.
  2. Shemyakina, Olga N., 2011. "The labor market, education and armed conflict in Tajikistan," Policy Research Working Paper Series 5738, The World Bank.
  3. Samantha Rawlings, 2012. "Scarring and Selection Effects of Epidemic Malaria on Human Capital," Economics & Management Discussion Papers em-dp2012-01, Henley Business School, Reading University.
  4. Parlow, Anton, 2011. "Education and armed conflict: the Kashmir insurgency in the nineties," MPRA Paper 38010, University Library of Munich, Germany.
  5. Parlow, Anton, 2012. "Armed conflict and children's health - exploring new directions: The case of Kashmir," MPRA Paper 38033, University Library of Munich, Germany.
  6. Anton Parlow, 2012. "Armed Conflict and Children’s Health – Exploring new directions: The case of Kashmir," HiCN Working Papers 119, Households in Conflict Network.
  7. Carly Petracco & Helena Schweiger, 2012. "The impact of armed conflict on firms’ performance and perceptions," Working Papers 152, European Bank for Reconstruction and Development, Office of the Chief Economist.

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