[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/hhs/gunwpe/0749.html
   My bibliography  Save this paper

Scaring or scarring? Labour market effects of criminal victimisation

Author

Listed:
  • Bindler, Anna

    (anna.bindler@economics.gu.se)

  • Ketel, Nadine

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

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," Working Papers in Economics 749, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0749
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/2077/58594
    File Function: Full text
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Christian Dustmann & Francesco Fasani, 2016. "The Effect of Local Area Crime on Mental Health," Economic Journal, Royal Economic Society, vol. 126(593), pages 978-1017, June.
    2. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    3. Bruce Western & Jeffrey R. Kling & David F. Weiman, 2001. "The Labor Market Consequences of Incarceration," Working Papers 829, Princeton University, Department of Economics, Industrial Relations Section..
    4. Jeffrey Grogger, 1995. "The Effect of Arrests on the Employment and Earnings of Young Men," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(1), pages 51-71.
    5. Henrik Kleven & Camille Landais & Jakob Egholt Søgaard, 2019. "Children and Gender Inequality: Evidence from Denmark," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 181-209, October.
    6. Francesca Cornaglia & Naomi E. Feldman & Andrew Leigh, 2014. "Crime and Mental Well-Being," Journal of Human Resources, University of Wisconsin Press, vol. 49(1), pages 110-140.
    7. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    8. Aaron Chalfin & Justin McCrary, 2017. "Criminal Deterrence: A Review of the Literature," Journal of Economic Literature, American Economic Association, vol. 55(1), pages 5-48, March.
    9. Janet Currie & Michael Mueller-Smith & Maya Rossin-Slater, 2022. "Violence While in Utero: The Impact of Assaults during Pregnancy on Birth Outcomes," The Review of Economics and Statistics, MIT Press, vol. 104(3), pages 525-540, May.
    10. Jeffrey R. Kling, 2006. "Incarceration Length, Employment, and Earnings," American Economic Review, American Economic Association, vol. 96(3), pages 863-876, June.
    11. Carlos Dobkin & Amy Finkelstein & Raymond Kluender & Matthew J. Notowidigdo, 2018. "The Economic Consequences of Hospital Admissions," American Economic Review, American Economic Association, vol. 108(2), pages 308-352, February.
    12. Rodrigo R. Soares, 2015. "Welfare costs of crime and common violence," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 42(1), pages 117-137, January.
    13. Mirko Draca & Stephen Machin, 2015. "Crime and Economic Incentives," Annual Review of Economics, Annual Reviews, vol. 7(1), pages 389-408, August.
    14. Philip Oreopoulos & Till von Wachter & Andrew Heisz, 2012. "The Short- and Long-Term Career Effects of Graduating in a Recession," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 1-29, January.
    15. David W. Johnston & Michael A. Shields & Agne Suziedelyte, 2018. "Victimisation, Well†being and Compensation: Using Panel Data to Estimate the Costs of Violent Crime," Economic Journal, Royal Economic Society, vol. 128(611), pages 1545-1569, June.
    16. Brian Bell & Anna Bindler & Stephen Machin, 2018. "Crime Scars: Recessions and the Making of Career Criminals," The Review of Economics and Statistics, MIT Press, vol. 100(3), pages 392-404, July.
    17. 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.
    18. Braakmann, Nils, 2012. "How do individuals deal with victimization and victimization risk? Longitudinal evidence from Mexico," Journal of Economic Behavior & Organization, Elsevier, vol. 84(1), pages 335-344.
    19. Marcus Eliason & Donald Storrie, 2006. "Lasting or Latent Scars? Swedish Evidence on the Long-Term Effects of Job Displacement," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 831-856, October.
    20. Hamermesh, Daniel S., 1999. "Crime and the Timing of Work," Journal of Urban Economics, Elsevier, vol. 45(2), pages 311-330, March.
    21. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
    22. Ornstein, Petra, 2017. "The price of violence: Consequences of violent crime in Sweden," Working Paper Series 2017:22, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    23. Gerard J. Berg & Petter Lundborg & Johan Vikström, 2017. "The Economics of Grief," Economic Journal, Royal Economic Society, vol. 127(604), pages 1794-1832, September.
    24. Gerard J. Berg & Petter Lundborg & Johan Vikström, 2017. "The Economics of Grief," Economic Journal, Royal Economic Society, vol. 127(604), pages 1794-1832, September.
    25. Anna Aizer & Joseph J. Doyle, 2015. "Juvenile Incarceration, Human Capital, and Future Crime: Evidence from Randomly Assigned Judges," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(2), pages 759-803.
    26. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    27. Jeffrey R. Kling & David Weiman & Bruce Western, 2001. "The Labor Market Consequences of Incarceration," Working Papers 829, Princeton University, Department of Economics, Industrial Relations Section..
    28. Janke, Katharina & Propper, Carol & Shields, Michael A., 2016. "Assaults, murders and walkers: The impact of violent crime on physical activity," Journal of Health Economics, Elsevier, vol. 47(C), pages 34-49.
    29. Mark A. Cohen, 2008. "The Effect of Crime on Life Satisfaction," The Journal of Legal Studies, University of Chicago Press, vol. 37(S2), pages 325-353, June.
    30. Steven D. Levitt, 1999. "The changing relationship between income and crime victimization," Economic Policy Review, Federal Reserve Bank of New York, vol. 5(Sep), pages 87-98.
    31. Kristiina Huttunen & Jarle Møen & Kjell G. Salvanes, 2011. "How Destructive Is Creative Destruction? Effects Of Job Loss On Job Mobility, Withdrawal And Income," Journal of the European Economic Association, European Economic Association, vol. 9(5), pages 840-870, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Anna Bindler & Randi Hjalmarsson & Nadine Ketel & Andreea Mitrut, 2024. "Discontinuities in the Age-Victimisation Profile and the Determinants of Victimisation," The Economic Journal, Royal Economic Society, vol. 134(657), pages 95-134.
    3. 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.
    4. 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.
    5. 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.
    6. Randi Hjalmarsson & Stephen Machin & Paolo Pinotti, 2024. "Crime and the labor market," CEP Discussion Papers dp2044, Centre for Economic Performance, LSE.
    7. 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).
    8. Ivandić, Ria & Kirchmaier, Tom & Saeidi, Yasaman & Torres Blas, Neus, 2024. "Football, alcohol, and domestic abuse," Journal of Public Economics, Elsevier, vol. 230(C).
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    15. 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.
    16. Artz, Benjamin & Welsch, David M., 2024. "Homelessness and Crime: An Examination of California," IZA Discussion Papers 17086, Institute of Labor Economics (IZA).
    17. 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).
    18. Sofia Amaral & Victoria Endl-Geyer & Helmut Rainer, 2020. "Familiäre Gewalt und die Covid-19-Pandemie: Ein Überblick über die erwarteten Auswirkungen und mögliche Auswege," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(07), pages 52-56, July.
    19. 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).
    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. 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).
    22. Serra-Sastre, Victoria, 2024. "Workplace violence and intention to quit in the English NHS," Social Science & Medicine, Elsevier, vol. 340(C).
    23. 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.
    24. Martin Salm & Ben Vollaard, 2021. "The Dynamics of Crime Risk Perceptions," American Law and Economics Review, American Law and Economics Association, vol. 23(2), pages 520-561.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Anna Bindler & Randi Hjalmarsson & Nadine Ketel & Andreea Mitrut, 2024. "Discontinuities in the Age-Victimisation Profile and the Determinants of Victimisation," The Economic Journal, Royal Economic Society, vol. 134(657), pages 95-134.
    4. Pallab K. Ghosh & Gary A. Hoover & Zexuan Liu, 2020. "Do State Minimum Wages Affect the Incarceration Rate?," Southern Economic Journal, John Wiley & Sons, vol. 86(3), pages 845-872, January.
    5. Manudeep Bhuller & Gordon B. Dahl & Katrine V. Løken & Magne Mogstad, 2020. "Incarceration, Recidivism, and Employment," Journal of Political Economy, University of Chicago Press, vol. 128(4), pages 1269-1324.
    6. 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.
    7. Grenet, Julien & Grönqvist, Hans & Niknami, Susan, 2024. "The effects of electronic monitoring on offenders and their families," Journal of Public Economics, Elsevier, vol. 230(C).
    8. Galiani, Sebastian & Jaitman, Laura & Weinschelbaum, Federico, 2020. "Crime and durable goods," Journal of Economic Behavior & Organization, Elsevier, vol. 173(C), pages 146-163.
    9. McCrary, Justin & Lee, David S., 2009. "The Deterrence Effect of Prison: Dynamic Theory and Evidence," Berkeley Olin Program in Law & Economics, Working Paper Series qt2gh1r30h, Berkeley Olin Program in Law & Economics.
    10. Alloush, Mo & Bloem, Jeffrey R., 2022. "Neighborhood violence, poverty, and psychological well-being," Journal of Development Economics, Elsevier, vol. 154(C).
    11. Anaïs Henneguelle & Benjamin Monnery & Annie Kensey, 2016. "Better at Home than in Prison? The Effects of Electronic Monitoring on Recidivism in France," Journal of Law and Economics, University of Chicago Press, vol. 59(3), pages 629-667.
    12. Randi Hjalmarsson & Stephen Machin & Paolo Pinotti, 2024. "Crime and the labor market," CEP Discussion Papers dp2044, Centre for Economic Performance, LSE.
    13. Freise, Diana & Schmitz, Hendrik & Westphal, Matthias, 2022. "Late-career unemployment and cognitive abilities," Journal of Health Economics, Elsevier, vol. 86(C).
    14. Roberto Galbiati & Aurélie Ouss & Arnaud Philippe, 2021. "Jobs, News and Reoffending after Incarceration [Examining the generality of the unemployment–crime association]," The Economic Journal, Royal Economic Society, vol. 131(633), pages 247-270.
    15. Siwach, Garima, 2018. "Unemployment shocks for individuals on the margin: Exploring recidivism effects," Labour Economics, Elsevier, vol. 52(C), pages 231-244.
    16. Synøve N. Andersen & Kjetil Telle, 2016. "Electronic monitoring and recidivism. Quasi-experimental evidence from Norway," Discussion Papers 844, Statistics Norway, Research Department.
    17. Patrick Bennett & Amine Ouazad, 2020. "Job Displacement, Unemployment, and Crime: Evidence from Danish Microdata and Reforms [The Link between Human Capital, Mass Layoffs, and Firm Deaths]," Journal of the European Economic Association, European Economic Association, vol. 18(5), pages 2182-2220.
    18. Darolia, Rajeev & Mueser, Peter & Cronin, Jacob, 2021. "Labor market returns to a prison GED," Economics of Education Review, Elsevier, vol. 82(C).
    19. Gaurav Khanna & Carlos Medina & Anant Nyshadham & Jorge Tamayo & Nicolas Torres, 2023. "Formal Employment and Organised Crime: Regression Discontinuity Evidence from Colombia," The Economic Journal, Royal Economic Society, vol. 133(654), pages 2427-2448.
    20. Aaron Chalfin & Benjamin Hansen & Jason Lerner & Lucie Parker, 2019. "Reducing Crime Through Environmental Design: Evidence from a Randomized Experiment of Street Lighting in New York City," NBER Working Papers 25798, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

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

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:gunwpe:0749. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jessica Oscarsson (email available below). General contact details of provider: https://edirc.repec.org/data/naiguse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.