Ted Enamorado|Luis F. López-Calva|Carlos Rodríguez?Castelán|Hernán Winkler
Income inequality and violent crime: Evidence from Mexico's drug war
Princeton University|World Bank|World Bank|World Bank
goal paper examine effect inequality crime rates unique context mexicos drug war analysis exploits original dataset containing inequality crime statistics 2000 mexican municipalities 20year period uncover causal effect inequality crime use instrumental variable gini coefficient combines initial income distribution municipality level national trends estimates indicate onepoint increment gini coefficient 2007 2010 translates increase 36 number drugrelated homicides per 100000 inhabitants fact effect found drug war substantially greater likely caused rise rents extracted crime expansion employment opportunities illegal sector proliferation drug trafficking organizations dtos accompanied decline legal job opportunities reduction probability caught given resource constraints faced law enforcement system combined latter factors made expected benefits criminal activity shift socially undesirable direction 2007 sector board poverty pov