Homicide and Work: The Impact of Mexico's Drug War on Labor Market Participation

40 Pages Posted: 29 Jul 2013

See all articles by Ariel BenYishay

Ariel BenYishay

College of William and Mary - Department of Economics

Sarah Pearlman

Vassar College

Date Written: June 1, 2013

Abstract

We estimate the impact of the escalation of the drug war in Mexico on the mean hours worked among the general population. We focus on homicides and exploit the variation in the trajectory of violence across states to identify a relationship between changes in homicides and hours worked. Using fixed effects and instrumental variables regressions, we find the increase in homicides has reduced average hours worked by 1-2%. These impacts are larger for the self-employed, specifically those who work from home. This provides evidence that the fear of violence can lead to behavioral changes that lower economic activity.

Keywords: Crime, Labor force participation, Mexico

JEL Classification: J22, O12, O54

Suggested Citation

BenYishay, Ariel and Pearlman, Sarah, Homicide and Work: The Impact of Mexico's Drug War on Labor Market Participation (June 1, 2013). Available at SSRN: https://ssrn.com/abstract=2302437 or http://dx.doi.org/10.2139/ssrn.2302437

Ariel BenYishay (Contact Author)

College of William and Mary - Department of Economics ( email )

Williamsburg, VA 23187-8795
United States

Sarah Pearlman

Vassar College ( email )

124 Raymond Avenue
Poughkeepsie, NY 12604
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
371
Abstract Views
1,753
Rank
150,659
PlumX Metrics