After the Coca Rush: Evaluating the Unintended Consequences of Crop Eradication on Educational Outcomes in a Former Cocaine Enclave in the Upper Peruvian Amazon *

Crop eradication and alternative development are the main policies aimed at reducing the production of coca cultivation in cocaine producing countries. This article analyzes the unintended consequences of Peru’s most extensive drug policy initiative − which includes crop eradication, alternative development, and public goods provision − on educational outcomes in the former cocaine enclave of Upper Huallaga Valley. Employing a town identification approach that followed crop eradication on a yearly basis between 2007- 2013 and the quantification of eradicated coca, we selected 325 towns located in Huánuco. After checking for identification assumptions and sensitivity checks, our Differences-in- Differences results show that coca eradication reduces almost 1.5 years of schooling for the youngest cohort relative to older age cohorts. Based on fieldwork observations, we tested three hypotheses for the underlying mechanisms behind less years of schooling: decreased school enrollment, increased school dropout and migration. Our results emphasize that coca cultivation was essential in supporting children’s education, and when its cultivation became unfeasible, their education was adversely impacted. Coca eradication also affects other educational outcomes such as illiteracy and completed primary education.