RT Journal Article
SR Electronic
T1 The Economic Burden of Crime
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 1287
OP 1318
DO 10.3368/jhr.55.4.0716-8072R2
VO 55
IS 4
A1 Andrea Velásquez
YR 2020
UL http://jhr.uwpress.org/content/55/4/1287.abstract
AB 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.