Building Peace: The Impact of Aid on the Labor Market for Insurgents / Radha Iyengar, Jonathan Monten, Matthew Hanson.

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Iyengar, Radha

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TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w17297.Publication details: Cambridge, Mass. National Bureau of Economic Research 2011.Description: 1 online resource: illustrations (black and white)Subject(s):

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Abstract: Employment growth could reduce violence during civil conflicts. To determine if increased employment affects violence we analyzed varying employment in development programs run by different US military divisions in Iraqi districts. Employment levels vary with funding periods and the military division in charge. Controlling for variability between districts, we find that a 10% increase in labor-related spending generates a 15-20% decline in labor-intensive insurgent violence. Overall the 10% spending increase is associated with a nearly 10% violence reduction, due to reduction in attacks which kill civilians, but increased attacks against the military. These findings indicate that labor-intensive development programs can reduce violence during insurgencies.

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Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w17297 (Browse shelf(Opens below))	Not For Loan

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Previous	nber w17294 Labor Market Flows in the Cross Section and Over Time /	nber w17295 Information Percolation in Segmented Markets /	nber w17296 Capital Mobility and Asset Pricing /	nber w17297 Building Peace: The Impact of Aid on the Labor Market for Insurgents /	nber w17298 The "CAPS" Prediction System and Stock Market Returns /	nber w17299 Inefficient Provision of Liquidity /	nber w1730 Intergenerational Risk Sharing /	Next

August 2011.

Employment growth could reduce violence during civil conflicts. To determine if increased employment affects violence we analyzed varying employment in development programs run by different US military divisions in Iraqi districts. Employment levels vary with funding periods and the military division in charge. Controlling for variability between districts, we find that a 10% increase in labor-related spending generates a 15-20% decline in labor-intensive insurgent violence. Overall the 10% spending increase is associated with a nearly 10% violence reduction, due to reduction in attacks which kill civilians, but increased attacks against the military. These findings indicate that labor-intensive development programs can reduce violence during insurgencies.