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Scaring or Scarring? Labor Market Effects of Criminal Victimization

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  • Anna Bindler
  • Nadine Ketel

Abstract

Little is known about the costs of crime to victims. We use unique and detailed register data on victimizations and monthly labor market outcomes from the Netherlands and estimate event study designs to assess short- and long-term effects of criminal victimization. Across offenses, both males and females experience significant decreases in earnings (up to −12.9%) and increases in benefit receipt (up to +6%) after victimization. The negative labor market responses are lasting (up to 4 years) and accompanied by shorter-lived responses in health expenditure. Heterogeneity results suggest that most groups of victims, including the noninjured, suffer nontrivial losses.

Suggested Citation

  • 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.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/718515
    DOI: 10.1086/718515
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    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law

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