IDEAS home Printed from https://ideas.repec.org/a/ucp/ecdecc/doi10.1086-670379.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • Jose Galdo, 2013. "The Long-Run Labor-Market Consequences of Civil War: Evidence from the Shining Path in Peru," Economic Development and Cultural Change, University of Chicago Press, vol. 61(4), pages 789-823.
  • Handle: RePEc:ucp:ecdecc:doi:10.1086/670379
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/670379
    Download Restriction: Access to the online full text or PDF requires a subscription.

    File URL: http://dx.doi.org/10.1086/670379
    Download Restriction: Access to the online full text or PDF requires a subscription.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Richard Akresh & Damien de Walque, 2008. "Armed Conflict and Schooling: Evidence from the 1994 Rwandan Genocide," HiCN Working Papers 47, Households in Conflict Network.
    3. Gianmarco Leon, 2010. "Civil Conflict and Human Capital Accumulation: The Long Term Effects of Political Violence in Perú," Working Papers id:2505, eSocialSciences.
    4. Kuminoff, Nicolai V. & Parmeter, Christopher F. & Pope, Jaren C., 2010. "Which hedonic models can we trust to recover the marginal willingness to pay for environmental amenities?," Journal of Environmental Economics and Management, Elsevier, vol. 60(3), pages 145-160, November.
    5. Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer;Population Association of America (PAA), vol. 38(1), pages 115-132, February.
    6. Chamarbagwala, Rubiana & Morán, Hilcías E., 2011. "The human capital consequences of civil war: Evidence from Guatemala," Journal of Development Economics, Elsevier, vol. 94(1), pages 41-61, January.
    7. 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.
    8. Sonia LASZLO & Eric SANTOR, 2009. "Migration, Social Networks, And Credit: Empirical Evidence From Peru," The Developing Economies, Institute of Developing Economies, vol. 47(4), pages 383-409.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Islam, Asadul & Ouch, Chandarany & Smyth, Russell & Wang, Liang Choon, 2016. "The long-term effects of civil conflicts on education, earnings, and fertility: Evidence from Cambodia," Journal of Comparative Economics, Elsevier, vol. 44(3), pages 800-820.
    2. 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.
    3. Aghajanian, Alia Jane, 2016. "Social capital and conflict: impact and implications," Economics PhD Theses 0116, Department of Economics, University of Sussex.
    4. Samantha Rawlings, 2012. "Gender, race, and heterogeneous scarring and selection effects of epidemic malaria on human capital," Economics & Management Discussion Papers em-dp2012-01, Henley Business School, Reading University.
    5. repec:ebd:wpaper:152 is not listed on IDEAS
    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. Shemyakina, Olga N., 2011. "The labor market, education and armed conflict in Tajikistan," Policy Research Working Paper Series 5738, The World Bank.
    8. Parlow, Anton, 2012. "Armed conflict and children's health - exploring new directions: The case of Kashmir," MPRA Paper 38033, University Library of Munich, Germany.
    9. Gianmarco León, 2012. "Civil Conflict and Human Capital Accumulation: The Long-term Effects of Political Violence in Perú," Journal of Human Resources, University of Wisconsin Press, vol. 47(4), pages 991-1022.
    10. Parlow, Anton, 2017. "Political Violence, Domestic Violence, and Children's Health: The Case of Pakistan," MPRA Paper 82966, University Library of Munich, Germany.
    11. Marc F. Bellemare & Johanna Fajardo-Gonzalez & Seth R. Gitter, 2016. "Foods and Fads - The Welfare Impacts of Rising Quinoa Prices in Peru," Working Papers 2016-06, Towson University, Department of Economics, revised Mar 2016.
    12. Parlow, Anton, 2011. "Education and armed conflict: the Kashmir insurgency in the nineties," MPRA Paper 38010, University Library of Munich, Germany.
    13. Pivovarova, Margarita & Swee, Eik Leong, 2015. "Quantifying the Microeconomic Effects of War Using Panel Data: Evidence From Nepal," World Development, Elsevier, vol. 66(C), pages 308-321.
    14. François Libois, 2016. "Households in Times of War : Adaptation Strategies during the Nepal Civil War," Working Papers 1603, University of Namur, Department of Economics.
    15. Richard Akresh, 2016. "Climate Change, Conflict, and Children," HiCN Working Papers 221, Households in Conflict Network.
    16. Italo A. Gutierrez & Jose V. Gallegos, 2016. "The Effect of Civil Conflict on Domestic Violence The Case of Peru," Working Papers WR-1168, RAND Corporation.
    17. Alvaro Morales & Prakarsh Singh, 2016. "“Face the bullet, spare the rod?” Evidence from the aftermath of the Shining Path Insurgency," HiCN Working Papers 191 updated, Households in Conflict Network.
    18. Prakarsh Singh & Alvaro Morales, 2015. "The Effect of Civil Conflict on Child Abuse: Evidence from Peru," NCID Working Papers 04/2015, Navarra Center for International Development, University of Navarra.

    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:ecdecc:doi:10.1086/670379. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division). General contact details of provider: http://www.journals.uchicago.edu/EDCC/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.