This study explores the long-run effect of the 1981-1993 Punjab Insurgency on the educational attainment of adults who were between ages 6-16 years at the time of the insurgency, using the 2005 India Human Development Survey. We find a substantial and statistically significant negative effect of terrorism on educational attainment. To explore the channels through which the conflict affected education, we use a unique historical dataset on the annual expenditure decisions by farmers in the state of Punjab during 1978-1989. We find a significant reduction in expenditure on education by households with a high ratio of girls to boys and those residing in violence affected districts, which suggests that this reduction was one of the demand-side channels through which conflict affected education.
Year: 2012 HiCN Working Paper No. 143