The Economic Burden of Crime: Evidence from Mexico

• Velásquez, Andrea ^[1]
  1. [1] University of Colorado Denver

     University of Colorado Denver

     Estados Unidos

     
• Localización: Journal of human resources, ISSN 0022-166X, Vol. 55, Nº 4, 2020, págs. 1287-1318
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • I estimate the impact of the recent and unprecedented surge in drug-related violence in Mexico on the labor market outcomes of Mexican workers. Using a nationally representative longitudinal data set that allows me to account for unobserved time-invariant heterogeneity, I find that there is a negative relationship between local violence and labor market outcomes. Self-employed individuals are the most sensitive to a violent environment, with men experiencing significantly reduced earnings and productivity, while women decrease their hours of work or exit the labor force entirely. I also find suggestive evidence that fear of victimization plays an important role explaining these changes.