Scaring or Scarring? Labor Market Effects of Criminal Victimization

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 212.9%) and increases in benefit receipt (up to 16%) 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 vic-tims, including the noninjured, suffer nontrivial losses.