RIEB Seminar (Jointly supported by Latin America Seminar / Workshop on Economic and Political Research on Latin America / Kobe-DEEH / Rokko Forum / Grant-in-Aid for Scientific Research (B))
| Date&Time | Monday, June 25, 2018, 3:30pm - 5:30pm |
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| Place | Meeting Room at RIEB (Annex, 2nd Floor) |
| Intended Audience | Faculties, Graduate Students, and People with Equivalent Knowledge |
| Language | English |
3:30pm - 5:30pm
| Speaker | Kensuke TESHIMA |
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| Affiliation | Centro de Investigación Económica, Instituto Tecnológico Autónomo de México (ITAM) |
| Topic | The Violent Consequences of Trade-Induced Worker Displacement in Mexico |
| Abstract | Mexican manufacturing job loss induced by competition with China increases cocaine trafficking and violence, particularly in municipalities with transnational criminal organizations. When it becomes more lucrative to traffic drugs because changes in local labor markets lower the opportunity cost of criminal employment, criminal organizations plausibly fight to gain control. The evidence supports a Becker-style model in which the elasticity between legitimate and criminal employment is particularly high where criminal organizations lower illicit job search costs, where the drug trade implies higher pecuniary returns to violent crime, and where unemployment disproportionately affects low-skilled men. |