Scaring or Scarring? Labour Market Effects of Criminal Victimisation

58 Pages Posted: 28 Jan 2019

See all articles by Anna Bindler

Anna Bindler

University of Gothenburg

Nadine Ketel

Göteborg University - Department of Economics and Statistics; IZA Institute of Labor Economics; VU University Amsterdam; University of Amsterdam; Tinbergen Institute

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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.

Keywords: crime, victimisation, labour market outcomes, event-study design

JEL Classification: K4, J01, J12, I1

Suggested Citation

Bindler, Anna and Ketel, Nadine, Scaring or Scarring? Labour Market Effects of Criminal Victimisation. IZA Discussion Paper No. 12082. Available at SSRN: https://ssrn.com/abstract=3323197

Anna Bindler (Contact Author)

University of Gothenburg ( email )

Viktoriagatan 30
Göteborg, 405 30
Sweden

Nadine Ketel

Göteborg University - Department of Economics and Statistics ( email )

Box 640
Vasagatan 1, E-building, floor 5 & 6
Göteborg, 40530
Sweden

IZA Institute of Labor Economics ( email )

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

VU University Amsterdam ( email )

No Address Available

University of Amsterdam ( email )

Spui 21
Amsterdam, 1018 WB
Netherlands

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

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