The Effects of Unemployment on Property Crime: Evidence from a Period of Unusually Large Swings in the Business Cycle
AbstractThis paper uses a panel of Swedish counties over the years 1988-99 to study the effects of unemployment on property crime rates. The period under study is characterized by great turbulence in the labor market - the variation in the unemployment rates is unprecedented in the second half of the century. The data hence provides a unique opportunity to investigate unemployment effects. According to the theory of economics of crime, increased unemployment rates lead to higher property crime rates. A fixed effects model is estimated to investigate this hypothesis. The model includes time- and county-specific effects and a number of economic and socio-demographic variables in order to control for unobservables and covariates. In addition the model is estimated with linear and quadratic time trends to control for county-specific unobserved trends. The result gives strong evidence that unemployment has a positive and significant effect on burglary, car theft and bike theft.
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Bibliographic InfoPaper provided by Uppsala University, Department of Economics in its series Working Paper Series with number 2003:14.
Length: 27 pages
Date of creation: 25 Mar 2003
Date of revision:
Publication status: Published as Edmark, Karin, 'Unemployment and Crime: Is there a connection?' in Scandinavian Journal of Economics, 2005, pages 353-373.
Contact details of provider:
Postal: Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden
Phone: + 46 18 471 25 00
Fax: + 46 18 471 14 78
Web page: http://www.nek.uu.se/
More information through EDIRC
Economics of Crime; Unemployment; Panel Data; Fixed Effects Estimation;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- J29 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Other
- J39 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Other
- J69 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Other
This paper has been announced in the following NEP Reports:
- NEP-AFR-2003-04-09 (Africa)
- NEP-ALL-2003-04-09 (All new papers)
- NEP-LAB-2003-04-09 (Labour Economics)
- NEP-MAC-2003-04-09 (Macroeconomics)
- NEP-PUB-2003-04-09 (Public Finance)
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