TY - JOUR T1 - The Economic Burden of Crime JF - Journal of Human Resources JO - J Hum Resour SP - 1287 LP - 1318 DO - 10.3368/jhr.55.4.0716-8072R2 VL - 55 IS - 4 AU - Andrea Velásquez Y1 - 2020/10/02 UR - http://jhr.uwpress.org/content/55/4/1287.abstract N2 - 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. ER -