European Seminars on the Economics of Crime (ESEC)

Using a novel dataset encompassing all crime reports in Brazil and employing a matched differences-in-differences design, we find that victims of assault experience a 7-10% reduction in labor market participation, with persistent and permanent effects evident even five years after the incident. Victims are less likely to search for jobs and significantly more likely to be absent from work. Overall, crime victims face a permanent income loss of 5-10% following the incident. Several mechanisms are examined to explain this effect.