Thiemo Fetzer

Published 19 June 2014

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Governments in conflict torn states scramble for effective policies to persistently reduce levels of violence. This paper provides evidence that a workfare program that functions as a social insurance, providing employment opportunities in times of need, may be an effective antidote to shut down an important mechanism that drives conflict. By mitigating adverse income shocks, the Indian National Rural Employment Guarantee scheme has been successful in removing the income dependence of insurgency violence and thus, contributes to persistently lower levels of violence.