The long-run labor-market consequences of civil war: Evidence from the shining path in peru
The article examines whether early life exposure to civil war in Peru affects labor-market earnings later in life, following the critical-period programming theory that highlights the role of early life circumstances in determining long-run economic outcomes The distinction between civil war and violence in civil wars has been largely overlooked in the microdata analysis of civil wars. Accounting for civil war violence has primarily been based on a single specific measure of violence that includes deaths and forced disappearances. The information on civil war measures comes from the Peruvian Truth and Reconciliation Commission, which collected a comprehensive data set based on the reconstruction of the civil war period. First, 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 early childhood exposure to violence 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.
|Journal||Economic Development and Cultural Change|
Galdo, J. (2013). The long-run labor-market consequences of civil war: Evidence from the shining path in peru. Economic Development and Cultural Change, 61(4), 789–823. doi:10.1086/670379