This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Review: Vol. 103 No. 3 (May 2013)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Insurgent Compensation: Evidence from Iraq

Article Citation

Bahney, Benjamin W., Radha K. Iyengar, Patrick B. Johnston, Danielle F. Jung, Jacob N. Shapiro, and Howard J. Shatz. 2013. "Insurgent Compensation: Evidence from Iraq." American Economic Review, 103(3): 518-22.

DOI: 10.1257/aer.103.3.518

Abstract

Participating in insurgency is physically risky. Why do people do so? Using new data on 3,799 payments to insurgent fighters by Al Qa'ida Iraq, we find that: (i) wages were extremely low relative to outside options, even compared to unskilled labor; (ii) the estimated risk premium is negative; and (iii) the wage schedule favors equalization and provides additional compensation for larger families. These results challenge the notion that fighters are paid their marginal product, or the opportunity cost of their time. They may be consistent with a "lemons" model in which fighters signal commitment by accepting low wages.

Article Full-Text Access

Full-text Article

Additional Materials

Authors

Bahney, Benjamin W. (RAND Corporation)
Iyengar, Radha K. (RAND Corporation)
Johnston, Patrick B. (RAND Corporation)
Jung, Danielle F. (Princeton U)
Shapiro, Jacob N. (Princeton U)
Shatz, Howard J. (RAND Corporation)

JEL Classifications

D74: Conflict; Conflict Resolution; Alliances
F35: Foreign Aid
O17: Formal and Informal Sectors; Shadow Economy; Institutional Arrangements


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us