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Guns and Gains: Effects of Exposure to Counterinsurgency Operations During School-Age Years

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Listed:
  • Punarjit Roychowdhury
  • Sourish Mustafi
  • Bharti Nandwani

Abstract

This paper examines the effects of exposure to hard-security counterinsurgency operations during school-age years on human capital and labor market outcomes in India. We exploit the 1989 introduction of the Greyhounds—a specialized commando force created to combat Naxalite insurgents—in Andhra Pradesh, as a natural experiment. Among all states affected by Naxalite violence, only Andhra Pradesh established such a force during that period. Difference-in-differences estimates suggest that exposure to the policy during school-age years led to increased educational attainment and, in adulthood, better labor market outcomes and improved socioeconomic status. We provide suggestive evidence that a plausible mechanism underlying these effects is increased household investment in education due to reduced uncertainty stemming from improved security. Our findings highlight the economic returns to peace and stability in conflict-affected regions.

Suggested Citation

  • Punarjit Roychowdhury & Sourish Mustafi & Bharti Nandwani, 2025. "Guns and Gains: Effects of Exposure to Counterinsurgency Operations During School-Age Years," HiCN Working Papers 441, Households in Conflict Network.
    • Handle: RePEc:hic:wpaper:441
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • 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

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