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Do Better Wages Reduce Crime? A Research Note

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  • Samuel L. Myers

Abstract

. Recent research has called into question theoretical and empirical findings demonstrating a deterrent effect of punishment. Also challenged has been the view that improved employment opportunities help to reduce participation in illegitimate activities. This research note summarizes newly published econometric findings revealing that better wages and employment indeed do appear to reduce individual recidivism rates, at least in the major data set studied. The data are drawn from the Baltimore LIFE experiment. Maximum likelihood methods are used to estimate the probability of recidivism one year after release from prison and the probability of avoiding rearrest or “survival” each month after release from prison. It is found that higher average weekly wages are associated with lower recidivism and higher survival rates. In contrast, no evidence is found to confirm a deterrent effect of punishment. [Complete documentation is published in S. L. Myers, Jr “Estimating the Economic Model of Crime: Employment vs. Punishment Effects,”.

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  • Samuel L. Myers, 1984. "Do Better Wages Reduce Crime? A Research Note," American Journal of Economics and Sociology, Wiley Blackwell, vol. 43(2), pages 191-195, April.
    • Handle: RePEc:bla:ajecsc:v:43:y:1984:i:2:p:191-195
    DOI: 10.1111/j.1536-7150.1984.tb02243.x
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    References listed on IDEAS

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    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    2. Ann Dryden Witte, 1980. "Estimating the Economic Model of Crime With Individual Data," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(1), pages 57-84.
    3. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-565, May-June.
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    Cited by:

    1. Sodik Dwi Purnomo & Doni Adi Supriyo & Rusito Rusito & Teguh Anindito & Wahyu Hariadi & Damar Jati, 2023. "How Economic Indicator Drive Crime? Empirical Study in Developing Country, Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 13(3), pages 94-99, May.
    2. Amanda Y. Agan & Michael D. Makowsky, 2018. "The Minimum Wage, EITC, and Criminal Recidivism," NBER Working Papers 25116, National Bureau of Economic Research, Inc.
    3. Andonova Veneta & Zuleta Hernando, 2009. "Beyond Moral Hazard: The Effect of Firm-Level Compensation Strategies on Economic Conflict," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 15(1), pages 1-25, October.
    4. Mohamad Kassem & Amjad Ali & Marc Audi, 2019. "Unemployment Rate, Population Density and Crime Rate in Punjab (Pakistan): An Empirical Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 8(2), pages 92-104, June.

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