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Racial Beliefs, Location And The Causes Of Crime

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Author Info
Verdier, Thierry
Zenou, Yves

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Abstract

The aim of this paper is to show that both location and stereotypical racial beliefs matter for explaining the high criminality rate among blacks in cities. In our model, blacks and whites are identical in all respects. However, if, for not economic but extrinsic reasons, everybody (including blacks) believes that more blacks become criminals than whites, then we show that more blacks (for rational reasons) become criminals than whites, earn lower wages and reside in ghettos located far away from legal activities. There is a vicious circle in which blacks cannot escape because both location and labour market outcomes reinforce each other to imply high crime rates among blacks living in cities. This is referred to as the discriminating equilibrium. If there are no such beliefs in the economy, then another equilibrium emerges in which blacks and whites experience the same labour market and crime outcomes and live together. This is referred to as the non-discriminating equilibrium. The key feature of this belief-based model is that multiple equilibria are sustainable only because of space. Indeed, since location is endogeneous, workers who are believed to be criminals have less incentives to locate close to jobs. Since workers that are located further away from jobs have a lower net wage, their risk of capture is lower and hence the incidence of crime is greater. Consequently, if there were no spatial dimension in this economy so that all workers were residing in the same location, multiple equilibria would not emerge and the only sustainable equilibrium would be the non-discriminating one, even if all agents believe that more blacks are criminals than whites. In other words, beliefs alone cannot generate the discriminating equilibrium; it is the presence of both 'negative' beliefs and 'bad' locations that allow the discriminating equilibrium to exist. It is thus our contention that location and beliefs play a major role in explaining the high criminality rate among blacks.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2455.

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Date of creation: May 2000
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Handle: RePEc:cpr:ceprdp:2455

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Related research
Keywords: Crime; Self-Fulfilling Prejudices; Urban Black Ghettos;

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Find related papers by JEL classification:
J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
R14 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Land Use Patterns

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    Other versions:
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Cited by:
(explanations, 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. Coralio Ballester & Antoni Calvó-Armengol & Yves Zenou, 2009. "Delinquent Networks," CReAM Discussion Paper Series 0912, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
    Other versions:
  2. Calvó-Armengol, Antoni & Verdier, Thierry & Zenou, Yves, 2006. "Strong and Weak Ties in Employment and Crime," CEPR Discussion Papers 5448, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Paolo Buonanno, 2003. "The Socioeconomic Determinants of Crime. A Review of the Literature," Working Papers 63, University of Milano-Bicocca, Department of Economics, revised Nov 2003. [Downloadable!]
  4. Bunzel, H & Marcoul, P., 2003. "Can racially unbiased police perpetuate long-run discrimination?," Discussion Paper 16, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  5. Patacchini, Eleonora & Zenou, Yves, 2007. "Ethnicity and Spatial Externalities in Crime," CEPR Discussion Papers 6130, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  6. Harris Selod & Yves Zenou, 2001. "Social Interactions, Ethnic Minorities and Urban Unemployment," Annales d'Economie et de Statistique, ADRES, issue 63-64, pages 11, Juillet-D. [Downloadable!]
    Other versions:
  7. Supriya Sarnikar & Todd Sorensen & Ronald L. Oaxaca, 2007. "Do You Receive a Lighter Prison Sentence Because You Are a Woman? An Economic Analysis of Federal Criminal Sentencing Guidelines," IZA Discussion Papers 2870, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Verdier, Thierry & Zenou, Yves, 2003. "Racial Beliefs, Location and the Causes of Crime," Working Paper Series 602, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  9. Zenou, Yves, 2003. "The Spatial Aspects of Crime," CEPR Discussion Papers 4028, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  10. Bunzel, Helle & Marcoul, Philippe, 2005. "On the Use of Racial Profiling as a Law Enforcement Tool," Staff General Research Papers 12397, Iowa State University, Department of Economics. [Downloadable!]
  11. Zenou, Yves, 2005. "Crime, Location and the Housing Market," Working Paper Series 651, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  12. Calvó-Armengol, Antoni & Zenou, Yves, 2003. "Social Networks and Crime Decisions: The Role of Social Structure in Facilitating Delinquent Behaviour," CEPR Discussion Papers 3966, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  13. Ballester, Coralio & Calvó-Armengol, Antoni & Zenou, Yves, 2004. "Who's Who in Crime Network. Wanted the Key Player," Working Paper Series 617, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  14. Nicolas Marceau & Steeve Mongrain, 2007. "Competition in Law Enforcement and Capital Allocation," Discussion Papers dp07-03, Department of Economics, Simon Fraser University. [Downloadable!]
    Other versions:
  15. Paolo Buonanno, 2003. "Crime, Education and Peer Pressure," Working Papers 64, University of Milano-Bicocca, Department of Economics, revised Nov 2003. [Downloadable!]
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