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Understanding the Spatial Relationship Between the Informal Labor Market and Violent Crime in Cali, Colombia

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  • Magaly Faride Herrera Giraldo
  • Carlos Giovanni González Espitia

Abstract

The study of the spatial distribution of homicides in historically violent cities is important because it provides new interpretations and potential policies for regions that are characterized by a persistent level of crime. While labor market characteristics have been correlated with its presence, few works have examined spatial patterns with the informal labor market. The empirical strategy begins with the calculation of the Moran index and the LISA test, which confirm a spatial association of homicides in neighborhoods. Subsequently, some linear regression models and a Spatial Durbin Model are estimated to confirm the correlation between homicides and the informal labor market. Finally, the intuition of this spatial correlation is shown in some maps. The main results show that the effect of the labor market on homicides does not come from the characteristics of the formal labor market but from the informal labor market, where working conditions are more precarious (no employment contract, health insurance, unemployment insurance, retirement pension, etc.). Thus, the bulk of this effect occurs in some hillside neighborhoods, areas with characteristics associated with informality, illegality, poverty and the lack of public investment in basic services such as electricity, water supply, sewerage or unpaved streets. These results have practical implications for understanding the correlation between economic incentives and crime in developing countries and in less favored cities in developed regions.

Suggested Citation

  • Magaly Faride Herrera Giraldo & Carlos Giovanni González Espitia, 2022. "Understanding the Spatial Relationship Between the Informal Labor Market and Violent Crime in Cali, Colombia," Icesi Economics Working Papers 20344, Universidad Icesi.
  • Handle: RePEc:col:000495:020344
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    More about this item

    Keywords

    homicides; labor informality; hillside; emerging hot spot analysis.;
    All these keywords.

    JEL classification:

    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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