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

Jos\'e-Ignacio Ant\'on, Juan Ponce and Rafael Mu\~noz 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

Date: 2024-05
New Economics Papers: this item is included in nep-ure
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