Reparations as Development? Evidence from Victims of the Colombian Armed Conflict

Arlen Guarin, Juliana Londoño-Vélez and Christian Posso Suarez ()

Borradores de Economia from Banco de la Republica de Colombia

Abstract: Our study is the first to investigate the effects of reparations for victims of gross human rights violations. In Colombia, victims of forced displacement, homicide, and other atrocities during the conflict received a lump-sum payment equal to three times their annual household income. Using novel linked administrative microdata and event studies, we show that reparations help victims rebuild their lives and significantly improve their well-being and that of their children. Specifically, reparations promote investment in physical and human capital, leading to enhanced living and health conditions, better educational outcomes, and increased asset-building and entrepreneurship, despite slightly discouraging labor supply. **** RESUMEN: Nuestro estudio es el primero que investiga los efectos de las reparaciones para las víctimas de graves violaciones de los derechos humanos. En Colombia, las víctimas de desplazamiento forzado, homicidio y otras atrocidades durante el conflicto recibieron un pago único equivalente a tres veces sus ingresos familiares anuales. Utilizando novedosos microdatos administrativos y estudios de eventos, demostramos que las reparaciones ayudan a las víctimas a reconstruir sus vidas y mejoran significativamente su bienestar y el de sus hijos. En concreto, las reparaciones promueven la inversión en capital físico y humano, lo que se traduce en mejores condiciones de vida y de salud, mejores resultados educativos y un aumento de la creación de activos y del espíritu empresarial, a pesar de desincentivar ligeramente la oferta de trabajo formal.

Keywords: Inversión; Maquinaria y Equipo; capital; FMOLS; modelos de cointegración; Investment; Machinery and Equipment; capital; FMOLS; cointegration models (search for similar items in EconPapers)
JEL-codes: D74 H53 I38 (search for similar items in EconPapers)
Pages: 118
Date: 2023-06
New Economics Papers: this item is included in nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://doi.org/10.32468/be.1236

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Persistent link: https://EconPapers.repec.org/RePEc:bdr:borrec:1236

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