Crime and Employment Destruction in Mexico: Do Firms Size and Location Matter?

We study the effects of homicide and kidnapping rates on firms employment losses, identifying metropolitan and non-metropolitan localities in Mexico. We use a panel dataset for 32 sub-national states organized on a quarterly basis over the period 2011:Q1-2016:Q4, decomposed by locality population si...

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Detalles Bibliográficos
Autores principales: Jorge O. Moreno, Eduardo Saucedo
Formato: artículo científico
Lenguaje:Inglés
Publicado: Universidad Autónoma Metropolitana Unidad Azcapotzalco 2020
Materias:
Acceso en línea:http://www.redalyc.org/articulo.oa?id=41364527002
http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/94841
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author Jorge O. Moreno
Eduardo Saucedo
author_facet Jorge O. Moreno
Eduardo Saucedo
author_sort Jorge O. Moreno
collection Repositorio
description We study the effects of homicide and kidnapping rates on firms employment losses, identifying metropolitan and non-metropolitan localities in Mexico. We use a panel dataset for 32 sub-national states organized on a quarterly basis over the period 2011:Q1-2016:Q4, decomposed by locality population size and firm workforce size, including self-employment, micro, small, medium and large firms. Our results indicate that crime has a negative impact on employment across all localities but has a robust negative effect on employment in micro and small firms in metropolitan areas and non-metropolitan areas. An increase of one standard deviation (SD) in the homicide rate in each locality destroys 319,542 jobs countrywide, while an equivalent increase in kidnapping implies a loss of 560,705 jobs. On including in the analysis locality population size in the considered dimensions, this increase in homicide implies a reduction of 181,988 and 99,184 jobs in metropolitan and non-metropolitan areas, whereas for an equivalent increase in kidnapping the losses are 387,547 and 256,969 jobs, conditional on their respective model. Our results provide evidence of the heterogeneous damage of crime to employment, conditional on firm´s location and workforce size. JEL: J21, J23, F15, F43, K14, R10, R30.
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spelling clacso-CLACSO948412022-03-22T18:49:18Z Crime and Employment Destruction in Mexico: Do Firms Size and Location Matter? Jorge O. Moreno Eduardo Saucedo Economía y Finanzas Crime employment panel data real wages Mexico We study the effects of homicide and kidnapping rates on firms employment losses, identifying metropolitan and non-metropolitan localities in Mexico. We use a panel dataset for 32 sub-national states organized on a quarterly basis over the period 2011:Q1-2016:Q4, decomposed by locality population size and firm workforce size, including self-employment, micro, small, medium and large firms. Our results indicate that crime has a negative impact on employment across all localities but has a robust negative effect on employment in micro and small firms in metropolitan areas and non-metropolitan areas. An increase of one standard deviation (SD) in the homicide rate in each locality destroys 319,542 jobs countrywide, while an equivalent increase in kidnapping implies a loss of 560,705 jobs. On including in the analysis locality population size in the considered dimensions, this increase in homicide implies a reduction of 181,988 and 99,184 jobs in metropolitan and non-metropolitan areas, whereas for an equivalent increase in kidnapping the losses are 387,547 and 256,969 jobs, conditional on their respective model. Our results provide evidence of the heterogeneous damage of crime to employment, conditional on firm´s location and workforce size. JEL: J21, J23, F15, F43, K14, R10, R30. 2020 2022-03-22T18:49:18Z 2022-03-22T18:49:18Z artículo científico http://www.redalyc.org/articulo.oa?id=41364527002 http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/94841 en http://www.redalyc.org/revista.oa?id=413 Análisis Económico application/pdf Universidad Autónoma Metropolitana Unidad Azcapotzalco Análisis Económico (México) Num.88 Vol.XXXV
spellingShingle Economía y Finanzas
Crime
employment
panel data
real wages
Mexico
Jorge O. Moreno
Eduardo Saucedo
Crime and Employment Destruction in Mexico: Do Firms Size and Location Matter?
title Crime and Employment Destruction in Mexico: Do Firms Size and Location Matter?
title_full Crime and Employment Destruction in Mexico: Do Firms Size and Location Matter?
title_fullStr Crime and Employment Destruction in Mexico: Do Firms Size and Location Matter?
title_full_unstemmed Crime and Employment Destruction in Mexico: Do Firms Size and Location Matter?
title_short Crime and Employment Destruction in Mexico: Do Firms Size and Location Matter?
title_sort crime and employment destruction in mexico: do firms size and location matter?
topic Economía y Finanzas
Crime
employment
panel data
real wages
Mexico
url http://www.redalyc.org/articulo.oa?id=41364527002
http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/94841