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

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  • Galdo, Jose C.

    ()
    (Carleton University)

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 one standard deviation increase in civil war exposure leads to a four percent fall in adult monthly earnings. Neither fetal, nor pre-school, periods significantly affect long-run earnings. Substantial heterogeneity in the earnings impacts emerge when considering variation in the types of civil war violence. Sexual violations disproportionally affected the wages of women, while torture and forced disappearances disproportionally affected the wages of men. Evidence on intervening pathways suggests that health rather than schooling is the most important channel in connecting early-life exposure to civil war and adult earnings.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5028.

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Length: 52 pages
Date of creation: Jun 2010
Date of revision:
Publication status: published in: Economic Development and Cultural Change, 2013, 61 (4), 789-823
Handle: RePEc:iza:izadps:dp5028

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Keywords: instrumental variable approach; earnings; Shining Path; civil war; measurement error;

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References

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  1. 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.
  2. 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.
  3. 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, Cambridge University Press, vol. 60(03), pages 723-754, July.
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Cited by:
  1. Samantha Rawlings, 2012. "Scarring and Selection Effects of Epidemic Malaria on Human Capital," Economics & Management Discussion Papers, Henley Business School, Reading University em-dp2012-01, Henley Business School, Reading University.
  2. Parlow, Anton, 2011. "Education and armed conflict: the Kashmir insurgency in the nineties," MPRA Paper 38010, University Library of Munich, Germany.
  3. 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.
  4. Shemyakina, Olga N., 2011. "The labor market, education and armed conflict in Tajikistan," Policy Research Working Paper Series 5738, The World Bank.
  5. Silvio Rendon, 2012. "A Discrete Choice Approach to Estimating Armed Conflicts’ Casualties: Revisiting the Numbers of a ‘Truth Commission’," Department of Economics Working Papers, Stony Brook University, Department of Economics 12-03, Stony Brook University, Department of Economics.
  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. Parlow, Anton, 2012. "Armed conflict and children's health - exploring new directions: The case of Kashmir," MPRA Paper 38033, University Library of Munich, Germany.

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