Income Inequality and Violent Crime : Evidence from Mexico's Drug War

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dc.contributor.author
Enamorado, Ted
en_US
dc.contributor.author
López-Calva, Luis-Felipe
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dc.contributor.author
Rodriguez Castelan, Carlos
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dc.contributor.author
Winkler, Hernán
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dc.date.accessioned
2014-06-30T16:39:51Z
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dc.date.available
2014-06-30T16:39:51Z
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dc.date.issued
2014-06
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dc.identifier.uri
http://hdl.handle.net/10986/18825
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dc.description.abstract
The relationship between income inequality and crime has attracted the interest of many researchers, but little convincing evidence exists on the causal effect of inequality on crime in developing countries. This paper estimates this effect in a unique context: Mexico's Drug War. The analysis takes advantage of a unique data set containing inequality and crime statistics for more than 2,000 Mexican municipalities covering a period of 20 years. Using an instrumental variable for inequality that tackles problems of reverse causality and omitted variable bias, this paper finds that an increment of one point in the Gini coefficient translates into an increase of more than 10 drug-related homicides per 100,000 inhabitants between 2006 and 2010. There are no significant effects before 2005. The fact that the effect was found during Mexico's Drug War and not before is likely because the cost of crime decreased with the proliferation of gangs (facilitating access to knowledge and logistics, lowering the marginal cost of criminal behavior), which, combined with rising inequality, increased the expected net benefit from criminal acts after 2005.
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dc.language
English
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dc.language.iso
en_US
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dc.publisher
World Bank, Washington, DC
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dc.relation.ispartofseries
Policy Research Working Paper;No. 6935
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dc.rights
CC BY 3.0 IGO
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dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
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dc.subject
ASSET POVERTY
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dc.subject
BURGLARY
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dc.subject
CONFLICT
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CONVICTION
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COUNTERFACTUAL
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COUNTRY LEVEL
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CRIME RATE
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CRIME RATES
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CRIME STATISTICS
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CRIMINAL
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CRIMINAL ACTIVITIES
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CRIMINAL ACTIVITY
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CRIMINAL ACTS
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CRIMINAL BEHAVIOR
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CRIMINAL JUSTICE
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CRIMINOLOGY
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CROSS-COUNTRY ANALYSIS
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CROSS-COUNTRY STUDIES
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CROSS-SECTIONAL DATA
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DATA SET
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DEATHS
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DECLINING INEQUALITY
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DELINQUENCY
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DEPENDENT VARIABLE
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DESCRIPTIVE STATISTICS
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DEVELOPED ECONOMIES
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dc.subject
DEVELOPING COUNTRIES
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dc.subject
DEVELOPMENT ECONOMICS
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dc.subject
DRUG
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DRUG TRAFFICKERS
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DRUG TRAFFICKING
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dc.subject
DRUGS
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ECONOMETRIC MODELS
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dc.subject
ECONOMIC ACTIVITY
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dc.subject
ECONOMIC DEVELOPMENT
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dc.subject
ECONOMIC REVIEW
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dc.subject
EMPIRICAL EVIDENCE
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dc.subject
EMPIRICAL LITERATURE
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dc.subject
EMPIRICAL WORK
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dc.subject
EXPLANATORY VARIABLE
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dc.subject
FAMILY STRUCTURES
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FINANCIAL CRISIS
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dc.subject
FIREARMS
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FOOD BASKET
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FOOD POVERTY
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FOOD POVERTY LINE
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dc.subject
GANGS
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dc.subject
GINI COEFFICIENT
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HIGHER INEQUALITY
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dc.subject
HOME
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dc.subject
HOMICIDE
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HOMICIDE RATE
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dc.subject
HOMICIDE RATES
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dc.subject
HOMICIDES
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dc.subject
HOUSEHOLD INCOME
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dc.subject
HOUSEHOLD PER CAPITA INCOME
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dc.subject
HOUSEHOLD SURVEY
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dc.subject
HOUSEHOLD SURVEYS
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dc.subject
HUMAN CAPITAL
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dc.subject
IMPACT OF INEQUALITY
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dc.subject
IMPRISONMENT
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dc.subject
INCOME
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dc.subject
INCOME DIFFERENCES
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dc.subject
INCOME DISTRIBUTION
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dc.subject
INCOME GROWTH
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dc.subject
INCOME INEQUALITY
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dc.subject
INCOME POVERTY
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dc.subject
INCOME REGRESSIONS
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dc.subject
INCOMES
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INCREASING INCOME INEQUALITY
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INCREASING INEQUALITY
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INEQUALITIES
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INEQUALITY DATA
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INEQUALITY LEVELS
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INEQUALITY MEASURE
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INEQUALITY MEASURES
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KIDNAPPING
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LABOR MARKET
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LACK OF INFORMATION
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LAW ENFORCEMENT
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dc.subject
LINEAR REGRESSION
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dc.subject
LITERACY
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MARGINAL COST
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dc.subject
MEAN INCOME
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dc.subject
MEASUREMENT ERROR
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MEDIAN INCOME
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MURDER
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MURDERS
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NATIONAL DEFENSE
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NEGATIVE CORRELATION
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NEGATIVE EFFECT
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NEGATIVE RELATIONSHIP
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NET BENEFIT
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dc.subject
OFFENSES
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ORGANIZED CRIME
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dc.subject
POLICY DISCUSSIONS
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dc.subject
POLICY RESEARCH
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dc.subject
POLITICAL ECONOMY
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dc.subject
POOR
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dc.subject
POOR INDIVIDUALS
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POSITIVE EFFECT
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dc.subject
POVERTY INCREASE
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dc.subject
POVERTY MAPS
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POVERTY MEASURE
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POVERTY MEASUREMENT
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POVERTY MEASURES
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POVERTY RATES
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POVERTY REDUCTION
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POVERTY STATUS
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PROPERTY CRIMES
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PUBLIC EXPENDITURE
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PUBLIC EXPENDITURES
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dc.subject
PUBLIC SPENDING
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RAPE
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REAL INCOME
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REFUGEES
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RISING INCOME INEQUALITY
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RISING INEQUALITY
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RURAL
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RURAL AREAS
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RURAL HOUSEHOLDS
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RURAL POPULATION
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SIGNIFICANT EFFECT
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dc.subject
SOCIAL CAPITAL
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dc.subject
SOCIAL DEVELOPMENT
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dc.subject
SOCIAL SCIENCE
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dc.subject
SOCIAL STRUCTURE
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dc.subject
TAXATION
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THEFT
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TORTURE
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VICTIMS
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VIOLENCE
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VIOLENT CRIME
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VIOLENT CRIMES
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WAR
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WELFARE INDICATORS
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dc.subject
WILL
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dc.title
Income Inequality and Violent Crime : Evidence from Mexico's Drug War
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okr.identifier.externaldocumentum
000158349_20140624090206
en_US
okr.identifier.internaldocumentum
19705699
en_US
okr.volume
1 of 1
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okr.date.disclosure
2014-06-01
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okr.topic
Poverty Reduction :: Rural Poverty Reduction
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okr.topic
Social Development :: Crime and Society
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okr.topic
Poverty Reduction :: Inequality
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okr.topic
Gender :: Gender and Law
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okr.topic
Services and Transfers to Poor
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okr.region.administrative
Latin America & Caribbean
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okr.identifier.report
WPS6935
en_US
okr.identifier.doi
10.1596/1813-9450-6935
en_US
okr.unit
Poverty Reduction and Economic Management Unit, Latin America and the Caribbean Region
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okr.region.country
Mexico
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okr.doctype
Publications & Research :: Policy Research Working Paper
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okr.doctype
Publications & Research
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okr.globalpractice
Social, Urban, Rural and Resilience
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okr.globalpractice
Governance
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okr.globalpractice
Poverty
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okr.globalpractice
Governance
en_US
okr.crosscuttingsolutionarea
Gender
en_US
okr.googlescholar.linkpresent
yes

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