Abstract

ABSTRACT:

I estimate the impact of the recent and unprecedented surge in drug-related violence in Mexico on the labor market outcomes of Mexican workers. Using a nationally representative longitudinal data set that allows me to account for unobserved time-invariant heterogeneity, I find that there is a negative relationship between local violence and labor market outcomes. Self-employed individuals are the most sensitive to a violent environment, with men experiencing significantly reduced earnings and productivity, while women decrease their hours of work or exit the labor force entirely. I also find suggestive evidence that fear of victimization plays an important role explaining these changes.

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Additional Information

ISSN
1548-8004
Print ISSN
0022-166X
Pages
pp. 1287-1318
Launched on MUSE
2020-10-30
Open Access
No
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