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Does Violence Reduce Investment In Education?: A Theoretical And Empirical Approach

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  • Felipe Barrera

    ()

  • Ana María Ibáñez

    ()

Abstract

The paper develops a dynamic theoretical model and presents empirical evidence about the relationship between violence and education investments. Although some papers have estimated regressions to link educational outcomes and violence, no formal models have been developed yet. A theoretical model is crucial to understand the different channels through which violence affects education. Three channels are identified. First, violence can affect directly the utility of households and, therefore, it may modify the consumption of education. Second, extreme violence can destroy physical capital and create uncertainty, which will lower investment and production. In the long run, destruction of physical assets and drop in investment impact the income of households who in turn must reduce consumption and cutback investments in education. Third, violence can modify the rates of return of education, and therefore, can change the investment on education. We find violence indeed exerts a toll on education. School enrollment is less in Colombian municipalities with homicide rates above the national median. Moreover, the likelihood of school enrollment decreases as homicide rates rise for all group ages. The impact of homicide rates is larger than transferences from the national government to the local government earmarked for investment in education and health.

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Bibliographic Info

Paper provided by UNIVERSIDAD DE LOS ANDES-CEDE in its series DOCUMENTOS CEDE with number 002382.

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Length: 24
Date of creation: 01 Jul 2004
Date of revision:
Handle: RePEc:col:000089:002382

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Keywords: Theory of Education;

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Cited by:
  1. Wharton, Kate & Uwaifo Oyelere, Ruth, 2011. "Conflict and its Impact on Educational Accumulation and Enrollment in Colombia: What We Can Learn from Recent IDPs," IZA Discussion Papers 5939, Institute for the Study of Labor (IZA).
  2. Catherine Rodríguez & Fabio Sánchez T., 2009. "Armed Conflict Exposure, Human Capital Investments and Child Labor: Evidence from Colombia," DOCUMENTOS CEDE 005400, UNIVERSIDAD DE LOS ANDES-CEDE.
  3. Rony Pshisva & Gustavo A. Suarez, 2006. "'Captive markets': the impact of kidnappings on corporate investment in Colombia," Finance and Economics Discussion Series 2006-18, Board of Governors of the Federal Reserve System (U.S.).
  4. Alexander Cotte Poveda, 2012. "Estimating Effectiveness of the Control of Violence and Socioeconomic Development in Colombia: An Application of Dynamic Data Envelopment Analysis and Data Panel Approach," Social Indicators Research, Springer, vol. 105(3), pages 343-366, February.
  5. Alexander Cotte Poveda, 2011. "Estimating Effectiveness of the Control of Violence and Socioeconomic Development in Colombia: An Application of DEA and Data Panel Approach," SERIE DE DOCUMENTOS EN ECONOMÍA Y VIOLENCIA 008356, CENTRO DE INVESTIGACIONES EN VIOLENCIA, INSTITUCIONES Y DESARROLLO ECONÓMICO (VIDE).
  6. Yashodhan Ghorpade, 2012. "Coping Strategies in Natural Disasters and under Conflict: A Review of Household Responses and Notes for Public Policy," HiCN Working Papers 136, Households in Conflict Network.
  7. Ruth Uwaifo Oyelere & Kate Wharton, 2013. "The Impact of Conflict on Education Attainment and Enrollment in Colombia: lessons from recent IDPs," HiCN Working Papers 141, Households in Conflict Network.
  8. World Bank, 2008. "Colombia - The Quality of Education in Colombia : An Analysis and Options for a Policy Agenda," World Bank Other Operational Studies 7875, The World Bank.
  9. Rony Pshisva & Gustavo A. Suarez, 2010. "Capital Crimes: Kidnappings and Corporate Investment in Colombia," NBER Chapters, in: The Economics of Crime: Lessons for and from Latin America, pages 63-97 National Bureau of Economic Research, Inc.

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