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Project Citation: 

Dell, Melissa, Feigenberg, Benjamin, and Teshima, Kensuke. Replication data for: The Violent Consequences of Trade-Induced Worker Displacement in Mexico. Nashville, TN: American Economic Association [publisher], 2019. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113545V1

Project Description

Summary:  View help for Summary Mexican manufacturing job loss induced by competition with China increases cocaine trafficking and violence, particularly in municipalities with transnational criminal organizations. When it becomes more lucrative to traffic drugs because changes in local labor markets lower the opportunity cost of criminal employment, criminal organizations plausibly fight to gain control. The evidence supports a Becker-style model in which the elasticity between legitimate and criminal employment is particularly high where criminal organizations lower illicit job search costs, where the drug trade implies higher pecuniary returns to violent crime, and where unemployment disproportionately affects low-skilled men.

Scope of Project

JEL Classification:  View help for JEL Classification
      F16 Trade and Labor Market Interactions
      J24 Human Capital; Skills; Occupational Choice; Labor Productivity
      J64 Unemployment: Models, Duration, Incidence, and Job Search
      K42 Illegal Behavior and the Enforcement of Law
      L60 Industry Studies: Manufacturing: General
      O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
      R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics


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