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arXiv · 2405.10884

Road to perdition? The effect of illicit drug use on labour market outcomes of prime-age men in Mexico

José-Ignacio Antón·Juan Ponce·Rafael Muñoz de Bustillo
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Abstract

This study addresses the impact of illicit drug use on the labour market outcomes of men in Mexico. We leverage statistical information from three waves of a comparable national survey and make use of Lewbel's heteroskedasticity-based instrumental variable strategy to deal with the endogeneity of drug consumption. Our results suggests that drug consumption has quite negative effects in the Mexican context: It reduces employment, occupational attainment and formality and raises unemployment of local men. These effects seem larger than those estimated for high-income economies

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José-Ignacio Antón, Juan Ponce, Rafael Muñoz de Bustillo. 2024-05-17. Road to perdition? The effect of illicit drug use on labour market outcomes of prime-age men in Mexico. https://doi.org/10.1016/j.ehb.2024.101415

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