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JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Crime and Compensating Wage Differentials: Evidence from Miami in 1980
Author(s): Claudia Smith Kelly
Citation: Claudia Smith Kelly, (2011) "Crime and Compensating Wage Differentials: Evidence from Miami in 1980," Journal of Applied Business and Economics, Vol. 12, Iss. 4, pp. 79 - 89
Article Type: Research paper
Publisher: North American Business Press
Abstract:
In 1980 Miami’s violent crime rate rose from 18.8 to 34.2 per 1000 individuals. Using samples from the
Current Population Survey and exploiting this increase in the crime rate, I compare changes in the labormarket
outcomes of Miami unskilled workers who faced a greater risk of suffering a fatal on-the-job
injury to the corresponding changes in a group of comparison cities. The empirical analysis suggests that
a rise in Miami’s crime rate of 82 percent between 1979 and 1980 led to high-crime-risk workers in
Miami earning a higher per hour relative wage than high-crime-risk workers in the comparison cities in
1980.
