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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.

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  • 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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    Cited by:

    1. 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.
    2. 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.
    3. Lavecchia, Adam & Oreopoulos, Philip & Spencer, Noah, 2024. "The impact of comprehensive student support on crime," CLEF Working Paper Series 65, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    4. 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).
    5. 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.
    6. Lavecchia, Adam M. & Oreopoulos, Philip & Spencer, Noah, 2024. "The Impact of Comprehensive Student Support on Crime: Evidence from the Pathways to Education Program," IZA Discussion Papers 16724, Institute of Labor Economics (IZA).
    7. Nelly Exbrayat & Victor Stephane, 2024. "Does Urbanization Cause Crime? Evidence from Rural-Urban Migration in South Africa," Working Papers 2401, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    8. 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.
    9. 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.
    10. 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.
    11. Abi Adams-Prassl & Kristiina Huttunen & Emily Nix & Ning Zhang, 2022. "Violence against women at work," Economics Series Working Papers 979, University of Oxford, Department of Economics.
    12. 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.
    13. 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).
    14. 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).
    15. 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).
    16. Ria Ivandic & Tom Kirchmaier & Neus Torres-Blas, 2021. "Football, alcohol and domestic abuse," CEP Discussion Papers dp1781, Centre for Economic Performance, LSE.
    17. 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.
    18. 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.
    19. 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.
    20. Leslie, Emily & Wilson, Riley, 2020. "Sheltering in place and domestic violence: Evidence from calls for service during COVID-19," Journal of Public Economics, Elsevier, vol. 189(C).
    21. 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.

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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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