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The Effect of Violent Crime on the Human Capital Accumulation of Young Adults by Ryan BROWN & Andrea VELÁSQUEZ

This paper estimates the effect of an unprecedented increase of drug-related violence in Mexico on the educational attainment, cognitive ability, time allocation, and employment behavior of young adults between the ages of 14 and 17.
The panel nature and the timing of the second (2005) and third wave (2009) of the Mexican Family Life Survey allows for some unique gains in the conflict literature, as we are able to compare pre and post violence outcomes, assess migratory behavioral response, and control for time invariant person-specific characteristics through individual fixed effects models. Preliminary results suggest children exposed to local violence have achieved lower levels of education, have reduced cognitive alertness, and are more likely to work. These effects are strongest for males and children of parents that work in occupations most adversely effected by the Mexican drug war.

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