The Impact of the Capture of Leaders of Criminal Organizations on the Labor Market: Evidence from Mexico

Osuna Gómez Daniel

No 2021-19, Working Papers from Banco de México

Abstract: This paper estimates the impact of the capture of leaders of criminal organizations on the labor market in municipalities where these organizations operated between 2004 and 2006. The difference-in-difference analysis compares different employment outcomes in cartel locations and the rest, before and after the capture of cartel leaders. The results show that captures caused a decrease in nominal wages and paid employment in cartel municipalities. Using Economic Census Data, I find that captures also caused a fall in the number of establishments and had a negative impact on other establishment outcomes. This document focuses exclusively on the impact of the capture of leaders of criminal organizations on the labor market until 2011 without studying other possible consequences, and thus does not make an integral assessment of this policy.

Keywords: Organized Crime; Labor Markets; Firms (search for similar items in EconPapers)
JEL-codes: J20 J48 K42 O17 (search for similar items in EconPapers)
Date: 2021-12
New Economics Papers: this item is included in nep-law, nep-lma and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:bdm:wpaper:2021-19

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