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Where You Live Matters: Drug Trade-Related Violence and Discrimination in the Labor Market

Author

Listed:
  • Emiliano Tealde

    (Universidad Católica del Uruguay)

Abstract

This work studies how drug trade-related violence affects individuals’ employment prospects. Using an experimental design, I find that candidates residing in areas associated with drug trade-related violence face significant labor market discrimination. Willingness to hire decreases a 16 % in candidates from a ”narco” neighborhood. Education acts as a mitigating factor, and candidates from a narco neighborhood who finish secondary school do not face discrimination. The results are not driven by employers’ perceptions of the candidates’ quality. I find that discrimination is higher among more experienced employers and that employers who are more concerned about public safety are not more likely to discriminate, which does not support statistical discrimination as the mechanism driving the effect.

Suggested Citation

  • Emiliano Tealde, 2025. "Where You Live Matters: Drug Trade-Related Violence and Discrimination in the Labor Market," Documentos CEDE 2025-40, Universidad de los Andes, Facultad de Economía, CEDE.
    • Handle: RePEc:col:000089:021811
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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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