{"type":"script","doc_desc":{"producers":[{"name":"Reproducibility WBG","abbr":"DIME","affiliation":"World Bank - Development Impact Department","role":"Verification and preparation of metadata"}],"prod_date":"2025-06-12","version":"1"},"project_desc":{"authoring_entity":[{"name":"Francisco Javier Vasquez Arias","affiliation":"World Bank","email":"micho.arias@gmail.com"},{"name":"Daniel Lederman","affiliation":"World Bank","email":"dlederman@worldbank.org"}],"title_statement":{"title":"Reproducibility package for Labor Market Scarring In A Developing Economy: Stigma Versus Lost Human Capital From Plant Closings In Mexico","idno":"RR_MEX_2025_353"},"data_statement":"All data sources are publicly available and included in the reproducibility package. (Open Data)","software":[{"name":"Stata","version":"18.0 MP"},{"name":"Excel"}],"scripts":[{"title":"Reproducibility package for Labor Market Scarring In A Developing Economy:Stigma Versus Lost Human Capital From Plant Closings In Mexico","date":"2025-06","notes":"Computational reproducibility verified by Development Impact (DIME) Analytics team, World Bank.","instructions":"See README in reproducibility package.","file_name":"RR_MEX_2025_353","zip_package":"RR_MEX_2025_353.zip","dependencies":"Stata dependencies are listed in the ado folder."}],"repository_uri":[{"name":"Development Data Hub (World Bank) ","uri":"https:\/\/datacatalog.worldbank.org\/int\/home"}],"production_date":"2025-06-12","abstract":"This paper estimates the magnitude of labor market scarring in a developing economy, a setting that has been understudied by the labor scarring literature dominated by advanced economies. The paper assesses the contributions of \u201cstigma\u201d versus \u201clost human capital,\u201d which cause earnings losses among displaced workers relative to non-displaced workers. The findings indicate that job separations caused by plant closings result in sizable and long-lasting reductions in earnings, with an average decline of 7.5 percent in hourly wages over a nine-year period. The estimate for one year after a plant closing is larger, at a decline of 10.8 percent. In a common sample, after controlling for unobserved, time-invariant individual characteristics, the impact of a plant closing declines from 11.9 to 8.2 percent. These results imply that stigma in the labor market due to imperfect information about workers (captured by unobservable worker characteristics) accounts for 30.8 percent of the average earnings losses, whereas lost employer-specific human capital explains the remaining 69.2 percent. The paper explores the effects of job separations due to plant closings on other labor market outcomes, including hours worked and informality, and provides estimates across genders and levels of education.","geographic_units":[{"name":"Mexico","code":"MEX"}],"keywords":[{"name":"Labor Market"},{"name":"Job Displacement"},{"name":"Wages"},{"name":"Education"},{"name":"Difference In Difference"}],"topics":[{"id":"I26","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"Returns to Education","parent_id":"I2"},{"id":" J01","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"Labor Economics: General","parent_id":"J0"},{"id":" J30","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"General","parent_id":"J3"},{"id":" J60","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"General","parent_id":"J6"}],"output":[{"type":"PRWP Working Paper","description":"Policy Research Working Papers (PRWP) 11116","title":"Labor Market Scarring In A Developing Economy:Stigma Versus Lost Human Capital From Plant Closings In Mexico","uri":" http:\/\/documents.worldbank.org\/curated\/en\/099731005072580094","doi":"https:\/\/doi.org\/10.1596\/1813-9450-11116"}],"language":[{"name":"English","code":"EN"}],"technology_requirements":"Runtime: 10 hours","disclaimer":"The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development\/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.","license":[{"name":"Modified BSD3","uri":"https:\/\/opensource.org\/license\/bsd-3-clause\/"}],"contacts":[{"name":"Francisco Javier Vasquez Arias","affiliation":"World Bank","email":"micho.arias@gmail.com"},{"name":"Reproducibility WBG","affiliation":"World Bank","email":"reproducibility@worldbank.org"}],"datasets":[{"name":"National Survey of Occupation and Employment (ENOE), population aged 15 years and over from Mexico's National Institute of Statistics and Geography (INEGI)","note":"Source: Mexico's National Institute of Statistics and Geography (INEGI). Data was accessed in May 2023. Data is quarterly and corresponds to the years 2005-2018. Raw data files are stored in the folder \"ENOE\".","access_type":"Data is public and included in the reproducibility package.","uri":"https:\/\/www.inegi.org.mx\/programas\/enoe\/15ymas\/","license_uri":"https:\/\/www.inegi.org.mx\/inegi\/terminos.html"}],"technology_environment":"Paper exhibits were reproduced on a computer with the following specifications:\n\u2022 OS: Windows 10 Enterprise, version 22H2\n\u2022 Processor: Intel(R) Xeon(R) Gold 6226R CPU @ 2.90GHz 2.91 GHz (2 processors)\n\u2022 Memory available: 128 GB\n\u2022 Software version: Stata 18.0 MP","reproduction_instructions":"- Open the do-file \"README_Master_ALL_May25.do\"\n- Update the file path in the global `root` of line 23\n- Run the do-file"},"tags":[{"tag":"DOI"},{"tag":"Open Code"},{"tag":"Open Data"}],"schematype":"script"}