Victimisation, Wellbeing and Compensation: Using Panel Data to Estimate the Costs of Violent Crime

38 Pages Posted: 4 Sep 2015

See all articles by David W. Johnston

David W. Johnston

Monash University

Michael A. Shields

University of Melbourne - Department of Economics; IZA Institute of Labor Economics

Agne Suziedelyte

City University London

Abstract

The costs of violent crime victimisation are often left to a judge, tribunal or jury to determine; leading to the potential for considerable subjectivity and variation. Using unique panel data, this paper provides compensation estimates that can help reduce the subjectivity of awards by giving a benchmark for the compensation required to offset direct and intangible costs. First, individual-area fixed-effects models allowing for adaptation to crime are estimated to assess the effects of violent crime victimisation on diverse measures of wellbeing.These results are then subsequently used to calculate the monetary compensation required to offset the wellbeing losses. Estimates allowing for the endogeneity of income suggest that A$88,000 is required to compensate the average crime victim. We find some evidence that compensation estimates are larger if the wellbeing losses of female family members are considered, and are larger for females if the perpetrator of the crime is a stranger rather than a partner, friend or relative.

Keywords: violent crime, victimisation, wellbeing, compensation, panel data

JEL Classification: I31, K30

Suggested Citation

Johnston, David W. and Shields, Michael A. and Suziedelyte, Agne, Victimisation, Wellbeing and Compensation: Using Panel Data to Estimate the Costs of Violent Crime. IZA Discussion Paper No. 9311. Available at SSRN: https://ssrn.com/abstract=2655351

Michael A. Shields

University of Melbourne - Department of Economics ( email )

Victoria 3010, 3010
Australia
+61 3 8344 4656 (Phone)
+61 3 8344 6899 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Agne Suziedelyte

City University London ( email )

Northampton Square
London, EC1V OHB
United Kingdom

HOME PAGE: http://https://sites.google.com/site/agnesuziedelyte/

Register to save articles to
your library

Register

Paper statistics

Downloads
16
Abstract Views
222
PlumX Metrics