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

About this event

We study the effects of reparations for victims of gross human rights violations in Colombia. Victims of forced displacement, homicide, and other atrocities committed during the internal armed conflict receive a lump-sum payment equal to three times their annual household income. Using novel linked administrative microdata and difference-in-difference methodologies, we show that reparations significantly improve the well-being of victims and their children. Reparations promote investment in physical and human capital, leading to enhanced living and health conditions, better educational outcomes, increased asset-building, and entrepreneurship, without meaningfully distorting labor supply.