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Universal Credit and Crime

Author

Listed:
  • d'Este, Rocco

    (University of Sussex)

  • Harvey, Alex

    (University of Sussex)

Abstract

We evaluate the criminogenic effects of Universal Credit (UC), a monumental welfare reform designed to radically change the social security payment system in the United Kingdom. We exploit the UC rollout across constituencies using monthly data from 2010 to 2019 for England and Wales. We find UC has caused around 45,000 burglaries, with criminogenic effects lasting until the end of the sample period and expected to grow considerably by the time UC is fully rolled out when 6.5 million more individuals will use the system. The analysis suggests the worsening of benefit recipients' financial conditions as the key mechanism.

Suggested Citation

  • d'Este, Rocco & Harvey, Alex, 2020. "Universal Credit and Crime," IZA Discussion Papers 13484, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13484
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    References listed on IDEAS

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    Cited by:

    1. Brewer, Mike & Dang, Thang & Tominey, Emma, 2022. "Universal Credit: Welfare Reform and Mental Health," IZA Discussion Papers 15178, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    universal credit; benefits; welfare system; crime;
    All these keywords.

    JEL classification:

    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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