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Armed Conflict Exposure, Human Capital Investments, And Child Labor: Evidence From Colombia

This article estimates the effect of armed conflict exposure on school drop-out and labor decisions of Colombian children between the ages of 6 and 17. The empirical strategy is based on two-stage duration analysis and biprobit estimations that take into account the endogeneity of conflict. We find that conflict affects children older than 11, inducing them to drop out of school and enter the labor market too early. We find that short-term exposure to violence is the most relevant for these decisions and probable channels of transmission include higher mortality risks, negative economic shocks, and lesser school quality.