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Crime, Education and Peer Pressure

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Author Info
Paolo Buonanno () (Department of Economics, University of Milan-Bicocca)

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Abstract

We present a dynamic two-period model of individual behaviour with heterogeneous agents in which individuals decide how to allocate their disposable time between education, crime and work in the legal sector. Education has a multiple role: it implies higher expected wages in the legal sector, increasing the opportunity cost of committing crime and it has a sort of “civilization” effect that makes more costly to engage in criminal activities. We model this effect by introducing a peer pressure function.

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File URL: http://dipeco.economia.unimib.it/repec/pdf/mibwpaper64.pdf
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File Function: First version, 2003
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Publisher Info
Paper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 64.

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Length: 19 pages
Date of creation: Nov 2003
Date of revision: Nov 2003
Handle: RePEc:mib:wpaper:64

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Related research
Keywords: Crime; Education; Peer Pressure;

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Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

References listed on IDEAS
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  1. Grogger, Jeffrey, 1995. "The Effect of Arrests on the Employment and Earnings of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 110(1), pages 51-71, February. [Downloadable!] (restricted)
  2. Ann Dryden Witte & Helen Tauchen, 1994. "Work and Crime: An Exploration Using Panel Data," NBER Working Papers 4794, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Lance Lochner & Enrico Moretti, 2001. "The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports," NBER Working Papers 8605, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Imrohoroglu, Ayse & Merlo, Antonio & Rupert, Peter, 2000. "On the Political Economy of Income Redistribution and Crime," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(1), pages 1-25, February.
    Other versions:
  5. Steven D. Levitt & Sudhir Alladi Venkatesh, 2000. "An Economic Analysis Of A Drug-Selling Gang'S Finances," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 755-789, August. [Downloadable!] (restricted)
    Other versions:
  6. Steven D. Levitt & Lance Lochner, 2001. "The Determinants of Juvenile Crime," NBER Chapters, in: Risky Behavior among Youths: An Economic Analysis, pages 327-374 National Bureau of Economic Research, Inc. [Downloadable!]
  7. Calvó-Armengol, Antoni & Zenou, Yves, 2003. "Social Networks and Crime Decisions: The Role of Social Structure in Facilitating Delinquent Behavior," Working Paper Series 601, Research Institute of Industrial Economics. [Downloadable!]
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  8. Freeman, Richard B, 1996. "Why Do So Many Young American Men Commit Crimes and What Might We Do about It?," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 25-42, Winter. [Downloadable!] (restricted)
    Other versions:
  9. Antoni Calvo-armengol & Yves Zenou, 2003. "Does crime affect unemployment? The Role of social networks," Annales d'Economie et de Statistique, ADRES, issue 71-72, pages 07, Juillet-D. [Downloadable!]
  10. Witte, Ann D & Tauchen, Helen, 1994. "Work and Crime: An Exploration Using Panel Data," Public Finance = Finances publiques, , vol. 49(Supplemen), pages 155-67.
  11. Glaeser, Edward L & Sacerdote, Bruce & Scheinkman, Jose A, 1996. "Crime and Social Interactions," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 507-48, May. [Downloadable!] (restricted)
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  12. Kandel, E. & Lazear, E.P., 1990. "Peer Pressure and Partnerships," Papers 90-07, Rochester, Business - Managerial Economics Research Center.
    Other versions:
  13. 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)
  14. Verdier, Thierry & Zenou, Yves, 2000. "Racial Beliefs, Location And The Causes Of Crime," CEPR Discussion Papers 2455, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  15. Richard B. Freeman, 1994. "Crime and the Job Market," NBER Working Papers 4910, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  16. Grogger, Jeff, 1998. "Market Wages and Youth Crime," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 756-91, October. [Downloadable!] (restricted)
    Other versions:
  17. Dan Usher, 1997. "Education as a Deterrent to Crime," Canadian Journal of Economics, Canadian Economics Association, vol. 30(2), pages 367-84, May. [Downloadable!] (restricted)
    Other versions:
  18. Richard B. Freeman, 1991. "Crime and the Employment of Disadvantaged Youths," NBER Working Papers 3875, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  19. Ayse Imrohoroglu & Antonio Merlo & Peter Rupert, 2004. "What Accounts For The Decline In Crime?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 707-729, 08. [Downloadable!] (restricted)
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  20. Anne C. Case & Lawrence F. Katz, 1991. "The Company You Keep: The Effects of Family and Neighborhood on Disad- vantaged Youths," NBER Working Papers 3705, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  21. Tauchen, Helen & Witte, Ann Dryden & Griesinger, Harriet, 1994. "Criminal Deterrence: Revisiting the Issue with a Birth Cohort," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 399-412, August. [Downloadable!] (restricted)
  22. Morgan Kelly, 2000. "Inequality And Crime," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 530-539, November. [Downloadable!] (restricted)
  23. Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "What causes violent crime?," European Economic Review, Elsevier, vol. 46(7), pages 1323-1357, July. [Downloadable!] (restricted)
  24. Nuno Garoupa, 1997. "The Role of Moral Values in the Economic Analysis of Crime: A General Equilibrium Approach," Economics Working Papers 245, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  25. Lochner, L., 1999. "Education, Work, and Crime: Theory and Evidence," RCER Working Papers 465, University of Rochester - Center for Economic Research (RCER). [Downloadable!]
  26. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June. [Downloadable!] (restricted)
  27. Sah, Raaj K, 1991. "Social Osmosis and Patterns of Crime," Journal of Political Economy, University of Chicago Press, vol. 99(6), pages 1272-95, December. [Downloadable!] (restricted)
  28. Chiu, W. Henry & Madden, Paul, 1998. "Burglary and income inequality," Journal of Public Economics, Elsevier, vol. 69(1), pages 123-141, July. [Downloadable!] (restricted)
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