How do individuals deal with victimization and victimization risk? Longitudinal evidence from Mexico
This paper uses variation in victimization probabilities and past victimization between individuals living in the same community to shed new light on the costs of crime. I use panel data from the Mexican Family Life Survey for 2002 and 2005 and look at the impact of within-community differences in victimization risk on changes in (avoidance) behavior and time-allocation. My results from fixed effects and instrumental variable estimations point towards a number of behavioral changes, including individuals arming themselves, with marked gender differences in the reactions of individuals. Crime victims also suffer from sleep deprivation indicating welfare losses.
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