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Scaring or Scarring? Labour Market Effects of Criminal Victimisation

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  • Bindler, Anna

    (University of Cologne)

  • Ketel, Nadine

    (Vrije Universiteit Amsterdam)

Abstract

Little is known about the costs of crime to victims and their families. In this paper, we use unique and detailed register data on victimisations and labour market outcomes from the Netherlands to overcome data restrictions previously met in the literature and estimate event-study designs to assess the short- and long-term effects of criminal victimisation. Our results show significant decreases in earnings (6.6-9.3%) and increases in the days of benefit receipt (10.4-14.7%) which are lasting up to eight years after victimisation. We find shorter-lived responses in health expenditure. Additional analyses suggest that the victimisation can be interpreted as an escalation point, potentially triggering subsequent adverse life-events which contribute to its persistent impact. Heterogeneity analyses show that the effects are slightly larger for males regarding earnings and significantly larger for females regarding benefits. These differences appear to be largely (but not completely) driven by different offence characteristics. Lastly, we investigate spill-over effects on nonvictimised partners and find evidence for a spill-over effect of violent threat on the partner's earnings.

Suggested Citation

  • Bindler, Anna & Ketel, Nadine, 2019. "Scaring or Scarring? Labour Market Effects of Criminal Victimisation," IZA Discussion Papers 12082, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12082
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    Cited by:

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    2. Anna Bindler & Randi Hjalmarsson & Nadine Ketel & Andreea Mitrut, 2023. "Discontinuities in the Age-Victimisation Profile and the Determinants of Victimisation," The Economic Journal, Royal Economic Society, vol. 134(657), pages 95-134.
    3. Pinotti, Paolo & Bhalotra, Sonia & Britto, Diogo & Sampaio, Breno, 2021. "Job Displacement, Unemployment Benefits and Domestic Violence," CEPR Discussion Papers 16350, C.E.P.R. Discussion Papers.
    4. Adam Lavecchia & Philip Oreopoulos & Noah Spencer, 2024. "The Impact of Comprehensive Student Support on Crime," Department of Economics Working Papers 2024-01, McMaster University.
    5. Bart Cockx & Jinkai Li & Erga Luo, 2023. "The Long-Term Impact of Parental Migration on the Health of Young Left-Behind Children," LIDAM Discussion Papers IRES 2023019, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    6. Bhuller, Manudeep & Dahl, Gordon B. & Løken, Katrine V. & Mogstad, Magne, 2022. "Domestic Violence and the Mental Health and Well-being of Victims and Their Children," Discussion Paper Series in Economics 21/2022, Norwegian School of Economics, Department of Economics.
    7. Anna Bindler & Nadine Ketel, 2022. "Scaring or Scarring? Labor Market Effects of Criminal Victimization," Journal of Labor Economics, University of Chicago Press, vol. 40(4), pages 939-970.
    8. Friehe, Tim & Do, Vu Mai Linh, 2023. "Do crime victims lose trust in others? Evidence from Germany," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 105(C).
    9. Ria Ivandic & Tom Kirchmaier & Neus Torres-Blas, 2021. "Football, alcohol and domestic abuse," CEP Discussion Papers dp1781, Centre for Economic Performance, LSE.
    10. Adam M. Lavecchia & Philip Oreopoulos & Noah Spencer, 2024. "The Impact of Comprehensive Student Support on Crime: Evidence from the Pathways to Education Program," NBER Working Papers 32045, National Bureau of Economic Research, Inc.
    11. Freitas-Monteiro, Teresa & Ludolph, Lars, 2021. "Barriers to humanitarian migration, victimisation and integration outcomes: evidence from Germany," LSE Research Online Documents on Economics 110500, London School of Economics and Political Science, LSE Library.
    12. Aaron Chalfin & Benjamin Hansen & Rachel Ryley, 2019. "The Minimum Legal Drinking Age and Crime Victimization," NBER Working Papers 26051, National Bureau of Economic Research, Inc.
    13. Abi Adams-Prassl & Kristiina Huttunen & Emily Nix & Ning Zhang, 2022. "Violence Against Women at Work," Opportunity and Inclusive Growth Institute Working Papers 064, Federal Reserve Bank of Minneapolis.
    14. Nelly Exbrayat & Victor Stephane, 2024. "Does Urbanization Cause Crime? Evidence from Rural-Urban Migration in South Africa," Working Papers halshs-04390026, HAL.
    15. Black, Dan A. & Grogger, Jeffrey & Kirchmaier, Tom & Sanders, Koen, 2023. "Criminal charges, risk assessment and violent recidivism in cases of domestic abuse," LSE Research Online Documents on Economics 121374, London School of Economics and Political Science, LSE Library.
    16. Serra-Sastre, Victoria, 2024. "Workplace violence and intention to quit in the English NHS," LSE Research Online Documents on Economics 121623, London School of Economics and Political Science, LSE Library.
    17. Martin Salm & Ben Vollaard, 2021. "The Dynamics of Crime Risk Perceptions," American Law and Economics Review, Oxford University Press, vol. 23(2), pages 520-561.
    18. Umbach, Tim, 2020. "A Vicious Cycle of Regional Unemployment and Crime? - Evidence from German Counties," VfS Annual Conference 2020 (Virtual Conference): Gender Economics 224611, Verein für Socialpolitik / German Economic Association.
    19. Vimefall, E. & Sahrblom, F. & Nordlöf, K., 2022. "Costs and benefits of an early intervention for juvenile offenders – The ‘Treatment Foster Care Oregon Program’," Children and Youth Services Review, Elsevier, vol. 142(C).
    20. Sofia Amaral & Victoria Endl-Geyer & Helmut Rainer & Victoria Kaiser, 2020. "Domestic Violence and the Covid-19 Pandemic: An Overview of the Expected Impact and Possible Ways Out," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(07), pages 52-56, July.
    21. Erwin, Christopher & Hennecke, Juliane & Meehan, Lisa & Pacheco, Gail, 2022. "Dynamic Relationships between Criminal Offending and Victimization," IZA Discussion Papers 15757, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    crime; victimisation; labour market outcomes; event-study design;
    All these keywords.

    JEL classification:

    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • I1 - Health, Education, and Welfare - - Health

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