longitudinal plant-level data covering all of Mexico from 2005–2010, and using an instrumental variable strategy that exploits … plausibly exogenous spatiotemporal variation in the homicide rate during the outbreak of drug-trade related violence in Mexico … impacted. Consistent with a blue-collar labor supply shock, the results show a positive impact on average blue-collar wages and …

differentials and compare them with estimated relative wages. The analysis provides evidence on productivity and nonproductivity … training on wages and productivity differentials. Higher education yields higher productivity. However, highly educated workers … appropriate their productivity gains of education through wages. On the other hand, workers with more experience are more …