Unemployment and gang crime: can prosperity backfire?
AbstractIn this paper, we study how unemployment affects gang crime. We examine a model of criminal gangs and suggest that a substitution effect between petty crime and severe crime is at work. In the model, non-monetary valuation of gang membership is private knowledge. Thus, the leaders face a trade-off between less crime per member in large gangs and more crime per member in small gangs. A decrease in unemployment may result in a switch from a large gang that requires petty crime to a small gang that requires severe crime.
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Bibliographic InfoArticle provided by Springer in its journal Economics of Governance.
Volume (Year): 12 (2011)
Issue (Month): 3 (September)
Contact details of provider:
Web page: http://link.springer.de/link/service/journals/10101/index.htm
Other versions of this item:
- Poutvaara, Panu & Priks, Mikael, 2011. "Unemployment and gang crime: Can prosperity backfire?," Munich Reprints in Economics 19790, University of Munich, Department of Economics.
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
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