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Do Conflicts Create Poverty Traps?: Asset Losses and Recovery for Displaced Households in Colombia

Do Conflicts Create Poverty Traps?: Asset Losses and Recovery for Displaced Households in Colombia

Chapter:
(p.137) 4 Do Conflicts Create Poverty Traps?: Asset Losses and Recovery for Displaced Households in Colombia
Source:
The Economics of Crime
Author(s):
Ana María IbáñezAndrés Moya
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226153766.003.0005

This chapter studies the costs of crime and violence by showing that in some cases the amount of insecurity is so high that households are displaced, inducing considerable asset losses. It explains this in the Colombian context, where a conflict of political origin has degenerated to a situation where the state no longer has exclusive control of violence in the area, which is what effectively happens in some impoverished urban areas in Latin America. This chapter collects both qualitative and quantitative evidence on the processes of asset losses and asset reaccumulation following an initial shock. The full recovery of the assets is relatively rare, that is, 75 percent of households do not recover their asset values, and becoming locked in low income trajectories is documented.

Keywords:   crime, violence, insecurity, displaced households, asset losses, Latin America, asset reaccumulation, Colombia

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