Youth Unemployment and Crime: New Lessons Exploring Longitudinal Register Data
AbstractThis paper investigates the link between youth unemployment and crime using a unique combination of labor market and conviction data spanning the entire Swedish working-age population over an extended period. The empirical analysis reveals large and statistically significant effects of unemployment on several types of crime. The magnitude of the effect is similar across different subgroups of the population. In contrast to most previous studies, the results suggest that joblessness explain a meaningful portion of why male youths are overrepresented among criminal offenders. I discuss reasons for the discrepancy in the results and show that that the use of aggregated measures of labor market opportunities in past studies is likely to capture offsetting general equilibrium effects. Contrary to predictions by economic theory the effect of unemployment on crime is not mediated by income. Instead, an analysis of crimes committed during weekdays versus weekends provides suggestive evidence that unemployment increases the time that individuals have to engage in crime.
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Bibliographic InfoPaper provided by Swedish Institute for Social Research in its series Working Paper Series with number 7/2011.
Length: 37 pages
Date of creation: 30 Mar 2011
Date of revision:
Unemployment; Delinquency; Age-crime profile;
Find related papers by JEL classification:
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-09 (All new papers)
- NEP-LAB-2011-04-09 (Labour Economics)
- NEP-LAW-2011-04-09 (Law & Economics)
- NEP-LTV-2011-04-09 (Unemployment, Inequality & Poverty)
- NEP-URE-2011-04-09 (Urban & Real Estate Economics)
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- Hjalmarsson, Randi & Holmlund, Helena & Lindquist, Matthew, 2011. "The Effect of Education on Criminal Convictions and Incarceration: Causal Evidence from Micro-data," CEPR Discussion Papers 8646, C.E.P.R. Discussion Papers.
- Grönqvist, Hans & Niknami, Susan, 2014. "Alcohol availability and crime: Lessons from liberalized weekend sales restrictions," Journal of Urban Economics, Elsevier, vol. 81(C), pages 77-84.
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