Crime and benefit sanctions
Abstract
In this paper we look at the relationship between crime and economic incentives in a different way to other workin this area. We look at changes in unemployment benefits and the imposition of benefit sanctions as a means ofstudying the way that people on the margins of crime may react to economic incentives. The paper relies on aquasiexperimental setting induced by the introduction of the Jobseekers Allowance (JSA) in the UK in October1996. We look at crime rates in areas more and less affected by the policy change before and after JSAintroduction. In the areas more affected by the tougher benefit regime crime rose by more. These were also theareas with higher outflows from unemployment and particularly to people dropping off the register but not intowork, education/training or onto other benefits. Areas that had more sanctioned individuals also experiencedhigher crime rates after the introduction of JSA. As such the benefit cuts and sanctions embodied in the JSAappear to have induced individuals previously on the margins to engage in crime. Thus there appears to havebeen an unintended policy consequence, associated with the benefit reform, namely higher crime.(This abstract was borrowed from another version of this item.)
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Bibliographic Info
Article provided by Springer in its journal Portuguese Economic Journal.
Volume (Year): 5 (2006)
Issue (Month): 2 (August)
Pages: 149-165
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Web page: http://link.springer.de/link/service/journals/10258/index.htm
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Related research
Keywords: Crime; Benefit sanctions; Jobseekers allowance; JEL Classification H00; J65;Other versions of this item:
- Stephen Machin & Olivier Marie, 2004. "Crime and Benefit Sanctions," CEP Discussion Papers dp0645, Centre for Economic Performance, LSE.
- H00 - Public Economics - - General - - - General
- J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:fth:prinin:300 is not listed on IDEAS
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Denis Fougère & Francis Kramarz & Julien Pouget, 2007.
"Youth Unemployment and Crime in France,"
Working Papers
2007-33, Centre de Recherche en Economie et Statistique.
- Denis Fougère & Francis Kramarz & Julien Pouget, 2009. "Youth Unemployment and Crime in France," Journal of the European Economic Association, MIT Press, vol. 7(5), pages 909-938, 09.
- Fougère, Denis & Kramarz, Francis & Pouget, Julien, 2006. "Youth Unemployment and Crime in France," CEPR Discussion Papers 5600, C.E.P.R. Discussion Papers.
- Fougère, Denis & Kramarz, Francis & Pouget, Julien, 2006. "Youth Unemployment and Crime in France," IZA Discussion Papers 2009, Institute for the Study of Labor (IZA).
- Mustard, David B., 2010. "How Do Labor Markets Affect Crime? New Evidence on an Old Puzzle," IZA Discussion Papers 4856, Institute for the Study of Labor (IZA).
- Olmo Silva, 2004. "Entrepreneurship: Can the Jack-of-All-Trades Attitude be Aquired?," CEP Discussion Papers dp0665, Centre for Economic Performance, LSE.
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