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The Influence of Conflict on the Demand for Education in the Basque Region


  • Olaf J. de Groot
  • Idil Göksel


It has previously been shown that civil conflict influences many economic factors, including education, which play an important role in development and economic growth. Previous authors working on the influence of conflict on education have, however, always focused strongly on the supply-side effects, whereas this paper examines the influence of conflict on the demand for education. It is theoretically shown that, under relatively general conditions, individuals living in a conflict area have an incentive to increase their level of education and that this effect depends on the individual's skill level. This hypothesis is then tested using the conflict in the Basque Region as a case study, which is an example of a conflict in which one would not expect strong supply-side effects. Using the other Spanish regions, an artificial region is created in which the population has a similar educational distribution as in the Basque Region. When comparing the true and artificial regions, it can clearly be seen that for individuals with a medium level of education, there is a strong incentive to increase their education level, which is in concordance with the theoretical model.

Suggested Citation

  • Olaf J. de Groot & Idil Göksel, 2009. "The Influence of Conflict on the Demand for Education in the Basque Region," Discussion Papers of DIW Berlin 927, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp927

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    References listed on IDEAS

    1. Kemnitz, Alexander, 2005. "Educational Federalism and the Quality Effects of Tuition Fees," Discussion Papers 617, Institut fuer Volkswirtschaftslehre und Statistik, Abteilung fuer Volkswirtschaftslehre.
    2. Braun Sebastian & Dwenger Nadja & Kübler Dorothea, 2010. "Telling the Truth May Not Pay Off: An Empirical Study of Centralized University Admissions in Germany," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-38, March.
    3. repec:oup:cesifo:v:54:y:2008:i:2:p:248-276. is not listed on IDEAS
    4. Gabrielle Demange, 2008. "The Provision of Higher Education in a Global World—Analysis and Policy Implications," CESifo Economic Studies, CESifo, vol. 54(2), pages 248-276, June.
    5. Tim Krieger & Thomas Lange, 2010. "Education policy and tax competition with imperfect student and labor mobility," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 17(6), pages 587-606, December.
    6. Douglas Dotterweich & Edward Baryla, 2005. "Non-resident Tuition and Enrollment in Higher Education: Implications for Tuition Pricing," Education Economics, Taylor & Francis Journals, vol. 13(4), pages 375-385.
    7. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    8. Spiess, C. Katharina & Wrohlich, Katharina, 2010. "Does distance determine who attends a university in Germany?," Economics of Education Review, Elsevier, vol. 29(3), pages 470-479, June.
    9. Michael Rizzo & Ronald G. Ehrenberg, 2004. "Resident and Nonresident Tuition and Enrollment at Flagship State Universities," NBER Chapters,in: College Choices: The Economics of Where to Go, When to Go, and How to Pay For It, pages 303-354 National Bureau of Economic Research, Inc.
    10. Mixon, Franklin Jr & Hsing, Yu, 1994. "The determinants of out-of-state enrollments in higher education: A tobit analysis," Economics of Education Review, Elsevier, vol. 13(4), pages 329-335.
    11. Schwager, Robert, 2007. "Public Universities, Tuition and Competition: A Tiebout Model," ZEW Discussion Papers 07-056, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    12. Mchugh, Richard & Morgan, James N., 1984. "The determinants of interstate student migration: a place-to-place analysis," Economics of Education Review, Elsevier, vol. 3(4), pages 269-278, August.
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    More about this item


    Conflict; Education; Matching; Spain;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

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