The increased incidence of drug related crime and conflict between organized crime groups in Mexico has been amplified by the government effort to combat the activities of these groups. Evidence suggests that during periods of rising violence, innocent civilians pay a steep price for these disputes. This paper investigates the impact of this amplified environment of violence on individual labor outcomes and per capita expenditure at the household level. The Mexican Family Life Survey offers a unique opportunity to address this research question as the first follow-up was conducted between 2005 and 2006, a period of low levels of violence, and the second follow-up was performed from 2009 to 2012, during years of greatly elevated violence. This data allows us to compare the outcomes of the same individual in periods of varying degrees of violence, while controlling for a rich set of individual characteristics. Moreover, the longitudinal nature of the survey allows controlling for unobserved heterogeneity at the individual level. Preliminary results show that homicides rates negatively affect the labor market participation of men, decrease earnings for both men and women and the effect on earnings seems to be stronger for individuals living in rural areas. In particular, these effects are strongest for those were self-employed in 2005/06. Ongoing research examines the impact of crime on temporal migration, accumulation of assets, investments in human capital, as well as, physical and psycho-social health.