Business structure, ethnic shifts in labor markets, and violence: The link between company size, local labor markets, and non-Latino homicide

Combining several schools of thought, including the civic engagement thesis, we extend current research by linking three things at the county level; firm size, the ethnic composition of labor markets, and violent crime. Our results suggest that larger businesses (based on the average number of persons employed) are more likely to have an external orientation and long recruitment reach, and this is linked to ethnic shifts in labor markets toward Latino workers. Such shifts are in turn associated with high rates of homicide among non-Latinos. Through indirect effects modeling, we find that increases in Black homicide are linked to rises in concentrated poverty, while increases in White homicide are linked to changes in unemployment. We discuss the implications of our findings.