The research presented in this thesis covers two topics: the economics of crime and econometric methodology. The first chapter addresses the question of whether higher wages reduce teenage crime rates. I exploit exogenous variation in the wages of teenagers resulting from federal minimum wage legislation. The second chapter examines the effect of crime on the labor market outcomes of victims. I use longitudinal data from the National Crime Victimization Survey to estimate the employment-related costs of crime. Estimates suggest that being the victim of a violent crime causes a transitory decline in the employment rates and household income of victims 2 to 3 percent.