TY - JOUR T1 - The Economic Burden of Crime: Evidence from Mexico JF - Journal of Human Resources JO - J Hum Resour DO - 10.3368/jhr.55.4.0716-8072R2 SP - 0716-8072r2 AU - Andrea Velásquez Y1 - 2019/03/08 UR - http://jhr.uwpress.org/content/early/2019/03/05/jhr.55.4.0716-8072R2.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 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. ER -