@article{ref1,
title="Drug-related violence in Mexico and its effects on employment",
journal="Empirical economics",
year="2019",
author="Coronado, Roberto and Saucedo, Eduardo",
volume="57",
number="2",
pages="653-681",
abstract="This paper examines the effects of drug-related crimes on employment in Mexico at the state level during the period 2005-2014. <br><br>RESULTS indicate that such crimes have a negative impact on employment. We are able to decompose employment into low-skilled and high-skilled employment, and results are heterogeneous among both types of employment. <br><br>RESULTS indicate that a 10% increase in drug-related crimes reduces total employment up to 0.9%. Additionally, our empirical findings indicate that high-skilled employment is more sensitive to an increase in drug-related violence than low-skilled employment. Low-skilled employment decreases up to 0.3%, while skilled employment declines up to 1.5% when drug-related violence increases by 10%. It is also found that skilled employment responds at an increasing rate when drug violence skyrockets. We also find that a rise in drug-related crimes increases wages as a mechanism to retain jobs in violent places.<p /> <p>Language: en</p>",
language="en",
issn="0377-7332",
doi="10.1007/s00181-018-1458-z",
url="http://dx.doi.org/10.1007/s00181-018-1458-z"
}