How do individuals deal with victimization and victimization risk? Longitudinal evidence from Mexico

This paper uses variation in victimization probabilities and past victimization between individuals living in the same community to shed new light on the costs of crime. I use panel data from the Mexican Family Life Survey for 2002 and 2005 and look at the impact of within-community differences in victimization risk on changes in (avoidance) behavior and time-allocation. My results from fixed effects and instrumental variable estimations point towards a number of behavioral changes, including individuals arming themselves, with marked gender differences in the reactions of individuals. Crime victims also suffer from sleep deprivation indicating welfare losses.

► I look at the consequences of within-community differences in subjective victimization risk and past victimization in Mexico.
► Both actual victimization and beliefs about victimization have adverse consequences.
► Higher victimization risk lead to changes in behavior, including individuals arming themselves.
► Higher victimization risks lead to sleep deprivation and individuals taking measures to protect their homes.
► Women are more likely to take more defensive measures, whereas men act more offensive.