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α: calibrated so average coauthorship-adjusted count equals average raw count
This article assesses the impact of drug cartels in Mexico, a country that has witnessed an unprecedented expansion of cartels and wave of drug-related violence since mid-2000. Using the difference-in-difference kernel matching method, the article finds that the areas most plagued by drug-related violence suffered a steep decline in production, profits, salaries, the number of businesses and workers in manufacturing. Unemployment and poverty also rose in the most violent areas. The few areas where cartels managed to work free of drug-related killings failed to see a change in poverty or unemployment, contradicting anecdotal storytelling of cartels benefiting local economies.