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

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  • Jos'e-Ignacio Ant'on
  • Juan Ponce
  • Rafael Mu~noz de Bustillo

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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  • Jos'e-Ignacio Ant'on & Juan Ponce & Rafael Mu~noz de Bustillo, 2024. "Road to perdition? The effect of illicit drug use on labour market outcomes of prime-age men in Mexico," Papers 2405.10884, arXiv.org.
    • Handle: RePEc:arx:papers:2405.10884
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    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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