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Market Wages and Youth Crime

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Author Info
Grogger, Jeff

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Abstract

To study the problem of widespread youth crime, the author analyzes a time-allocation model in which consumers face parametric wages and diminishing marginal returns to crime. The theory motivates an econometric model that he estimates using data from the National Longitudinal Survey of Youth. The author's estimates suggest that youth behavior is responsive to price incentives and that falling real wages may have been an important determinant of rising youth crime during the 1970s and 1980s. Moreover, wage differentials explain a substantial component of both the racial differential in criminal participation and the age distribution of crime. Copyright 1998 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 16 (1998)
Issue (Month): 4 (October)
Pages: 756-91
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Handle: RePEc:ucp:jlabec:v:16:y:1998:i:4:p:756-91

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Please 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.:
  1. Amemiya, Takeshi, 1978. "The Estimation of a Simultaneous Equation Generalized Probit Model," Econometrica, Econometric Society, vol. 46(5), pages 1193-1205, September. [Downloadable!] (restricted)
  2. Witte, Ann Dryden, 1980. "Estimating the Economic Model of Crime with Individual Data," The Quarterly Journal of Economics, MIT Press, vol. 94(1), pages 57-84, February. [Downloadable!] (restricted)
  3. John Bound & Richard B. Freeman, 1991. "What Went Wrong? The Erosion of Relative Earnings and Employment Among Young Black Men in the 1980s," NBER Working Papers 3778, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Lemieux, Thomas & Fortin, Bernard & Frechette, Pierre, 1994. "The Effect of Taxes on Labor Supply in the Underground Economy," American Economic Review, American Economic Association, vol. 84(1), pages 231-54, March. [Downloadable!] (restricted)
  5. K. Newey, Whitney, 1985. "Generalized method of moments specification testing," Journal of Econometrics, Elsevier, vol. 29(3), pages 229-256, September. [Downloadable!] (restricted)
  6. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-65, May-June. [Downloadable!] (restricted)
  7. Sjoquist, David Lawrence, 1973. "Property Crime and Economic Behavior: Some Empirical Results," American Economic Review, American Economic Association, vol. 63(3), pages 439-46, June. [Downloadable!] (restricted)
  8. Helen V. Tauchen & Ann Dryden Witte & Harriet Griesinger, 1988. "Deterrence, Work and Crime: Revisiting the Issues with Birth Cohort Data," NBER Working Papers 2508, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Gary S. Becker, 1968. "Crime and Punishment: An Economic Approach," Journal of Political Economy, University of Chicago Press, vol. 76, pages 169. [Downloadable!] (restricted)
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  10. Grogger, Jeffrey, 1991. "Certainty vs. Severity of Punishment," Economic Inquiry, Oxford University Press, vol. 29(2), pages 297-309, April.
  11. Richard B. Freeman, 1991. "Crime and the Employment of Disadvantaged Youths," NBER Working Papers 3875, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Fishe, Raymond P. H. & Trost, R. P. & Lurie, Philip M., 1981. "Labor force earnings and college choice of young women: An examination of selectivity bias and comparative advantage," Economics of Education Review, Elsevier, vol. 1(2), pages 169-191, April. [Downloadable!] (restricted)
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