Using a rich dataset of Colombian manufacturing establishments, we illustrate scarring effects of recessions operating through inefficient exit induced by heterogeneous credit constraints. We show that financially constrained businesses may be forced to exit the market during recessions even if...

I study the causal effect of violence against social leaders on coca cultivation and land restitution requests in the Colombian context from 2012 to 2018. Using the timing of unexpected killings of social leaders in an event study approach, I provide evidence that the start of the violence...