RT Journal Article
SR Electronic
T1 The Economic Burden of Crime: Evidence from Mexico
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 0716-8072r2
DO 10.3368/jhr.55.4.0716-8072R2
A1 Velásquez, Andrea
YR 2019
UL http://jhr.uwpress.org/content/early/2019/03/05/jhr.55.4.0716-8072R2.abstract
AB 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 dataset 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.