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

José Ignacio Antón, Juan Ponce and Rafael Muñoz de Bustillo

Economics & Human Biology, 2024, vol. 55, issue C

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

Keywords: Drugs; Labour market; Employment; Unemployment; Formality; Mexico (search for similar items in EconPapers)
JEL-codes: I12 J22 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ehbiol:v:55:y:2024:i:c:s1570677x24000674

DOI: 10.1016/j.ehb.2024.101415

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