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Mental Health and Labour Supply: Evidence from Mexico’s Ongoing Violent Conflicts

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  • Maren M. Michaelsen

    () (Ruhr University Bochum, Faculty of Economics)

Abstract

In Mexico, conflicts between drug-trafficking organisations result in a high number of deaths and immense suffering among both victims and non-victims every year. Little scientific research exists which identifies and quantifies the monetary and nonmonetary consequences of ongoing violent conflicts on individuals. Using the Mexican Family Life Survey for 2002 and 2005, the causal effect of mental health (symptoms of depression / anxiety) on the extensive and intensive margin of labour supply for workingaged men and women is estimated. Measures of the ongoing drug-related violent conflicts both at the macro level using intentional homicide rates by region, and at the micro level indicated by the presence of armed groups in the neighbourhood, serve as instruments for mental health. The results show a significant adverse impact of the conflicts on anxiety for men and women. Based on IV-Tobit model results, a worse mental health state decreases individual labour supply strongly and significantly for men. The findings demonstrate that Mexico's population not only suffers from the violent conflicts between drug-trafficking organisations by anxiety or even depression but also indirectly from less household income through less work which in turn has consequences for Mexico's social development and economic growth.

Suggested Citation

  • Maren M. Michaelsen, 2012. "Mental Health and Labour Supply: Evidence from Mexico’s Ongoing Violent Conflicts," HiCN Working Papers 117, Households in Conflict Network.
  • Handle: RePEc:hic:wpaper:117
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    Citations

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    Cited by:

    1. Pedro Paulo Orraca Romano, 2015. "Crime Exposure and Educational Outcomes in Mexico," Working Paper Series 7715, Department of Economics, University of Sussex.
    2. Tilman Brück & Patricia Justino & Philip Verwimp & Alexandra Avdeenko & Andrew Tedesco, 2016. "Measuring Violent Conflict in Micro-level Surveys: Current Practices and Methodological Challenges," World Bank Research Observer, World Bank Group, vol. 31(1), pages 29-58.
    3. Tilman Brück & Patricia Justino & Philip Verwimp & Andrew Tedesco & Alexandra Avdeenko, 2013. "Measuring Conflict Exposure in Micro-Level Surveys," HiCN Working Papers 153, Households in Conflict Network.
    4. Muhammad Nasir, 2016. "Violence and Child Health Outcomes: Evidence from Mexican Drug War," HiCN Working Papers 208, Households in Conflict Network.
    5. Aghajanian, Alia Jane, 2016. "Social capital and conflict: impact and implications," Economics PhD Theses 0116, Department of Economics, University of Sussex.
    6. Olga Shemyakina & Anke Plagnol, 2013. "Subjective Well-Being and Armed Conflict: Evidence from Bosnia-Herzegovina," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(3), pages 1129-1152, September.
    7. Orraca Romano, Pedro Paulo, 2016. "Essays on development and labour economics for Mexico," Economics PhD Theses 0816, Department of Economics, University of Sussex.
    8. World Bank Group, 2015. "Toward Solutions for Youth Employment," World Bank Other Operational Studies 23261, The World Bank.

    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • I19 - Health, Education, and Welfare - - Health - - - Other
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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