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Education, Work, and Crime: A Human Capital Approach

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Lance Lochner

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Abstract

This paper develops a model of crime in which human capital increases the opportunity cost of crime from foregone work and expected costs associated with incarceration. Older, more intelligent, and more educated adults should commit fewer street (unskilled) crimes. White collar crimes decline less (or increase) with age and education. Predictions for age-crime and education-crime relationships receive broad empirical support in self-report data from the National Longitudinal Survey of Youth and arrest data from the Uniform Crime Reports. The effects of education, training, and wage subsidies, as well as enforcement policies on criminal behavior are discussed.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10478.

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Date of creation: May 2004
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Handle: RePEc:nbr:nberwo:10478

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Find related papers by JEL classification:
J2 - Labor and Demographic Economics - - Demand and Supply of Labor
K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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References listed on IDEAS
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. 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)
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    Other versions:
  3. 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:
  4. H. Naci Mocan & Stephen C. Billups & Jody Overland, 2000. "A Dynamic Model of Differential Human Capital and Criminal Activity," NBER Working Papers 7584, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. 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)
  6. Lance Lochner & Enrico Moretti, 2004. "The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports," American Economic Review, American Economic Association, vol. 94(1), pages 155-189, March. [Downloadable!]
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  7. Steven D. Levitt, 1998. "Juvenile Crime and Punishment," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1156-1185, December. [Downloadable!] (restricted)
    Other versions:
  8. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-95, October. [Downloadable!] (restricted)
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  9. Bruce D. Meyer & Dan T. Rosenbaum, 2000. "Making Single Mothers Work: Recent Tax and Welfare Policy and its Effects," NBER Working Papers 7491, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Patrick Bayer & Randi Pintoff & David E. Pozen, 2003. "Building Criminal Capital Behind Bars: Social Learning in Juvenile Corrections," Working Papers 864, Economic Growth Center, Yale University. [Downloadable!]
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  11. Steve Machin & Costas Meghir, 2000. "Crime and economic incentives," IFS Working Papers W00/17, Institute for Fiscal Studies. [Downloadable!]
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  12. Donohue, John J, III & Siegelman, Peter, 1998. "Allocating Resources among Prisons and Social Programs in the Battle against Crime," Journal of Legal Studies, University of Chicago Press, vol. 27(1), pages 1-43, January.
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  16. Chien-Chieh Huang & Derek Laing & Ping Wang, 2004. "Crime And Poverty: A Search-Theoretic Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 909-938, 08. [Downloadable!] (restricted)
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  18. Susumu Imai & Kala Krishna, 2001. "Employment, Dynamic Deterrence and Crime," NBER Working Papers 8281, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  19. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352. [Downloadable!] (restricted)
  20. Nagin, Daniel & Waldfogel, Joel, 1995. "The effects of criminality and conviction on the labor market status of young British offenders," International Review of Law and Economics, Elsevier, vol. 15(1), pages 109-126, January. [Downloadable!] (restricted)
  21. James J. Heckman & Lance Lochner & Christopher Taber, 1998. "Explaining Rising Wage Inequality: Explorations with a Dynamic General Equilibrium Model of Labor Earnings with Heterogeneous Agents," NBER Working Papers 6384, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
Full references

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. Antonio Merlo & Kenneth I. Wolpin, 2008. "The Transition from School to Jail: Youth Crime and High School Completion Among Black Males, Second Version," PIER Working Paper Archive 09-002, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 16 Jan 2009. [Downloadable!]
  2. Fu, Shihe, 2008. "Sexual orientation and neighborhood quality: Do same-sex couples make better communities?," MPRA Paper 7678, University Library of Munich, Germany. [Downloadable!]
  3. Bryan Engelhardt & Guillaume Rocheteau & Peter Rupert, 2007. "Crime and the labor market: a search model with optimal contracts," Working Paper 0715, Federal Reserve Bank of Cleveland. [Downloadable!]
    Other versions:
  4. Paolo Buonanno & Leone Leonida, 2006. "Education and crime: evidence from Italian regions," Applied Economics Letters, Taylor and Francis Journals, vol. 13(11), pages 709-713, September. [Downloadable!] (restricted)
    Other versions:
  5. Rafael Almeida da Matta & Mônica Viegas Andrade, 2005. "Avaliação Econômica Do Impacto Do Programa De Controle De Homicídios Fica Vivo," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] 153, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
    Other versions:
  6. Alberto Dalmazzo & Guido de Blasio, 2005. "Where do human capital externalities end up?," Temi di discussione (Economic working papers) 554, Bank of Italy, Economic Research Department. [Downloadable!]
  7. Alberto Dalmazzo & Guido Blasio, 2007. "Production and consumption externalities of human capital: an empirical study for Italy," Journal of Population Economics, Springer, vol. 20(2), pages 359-382, April. [Downloadable!] (restricted)
  8. João Manoel Pinho de Mello & Eduardo Zilberman, 2006. "Does crime affect economic decisions? An empirical investigation of savings in a high-crime environment," Textos para discussão 524, Department of Economics PUC-Rio (Brazil), revised Oct 2008. [Downloadable!]
  9. Dinand Webbink & Pierre Koning & Suncica Vujic & Nick Martin, 2008. "Why are criminals less educated than non-criminals? Evidence from a cohort of young Australian twins," CPB Discussion Papers 114, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  10. Alberto Dalmazzo & Guido De Blasio, 2005. "Where Do Human Capital Externalities End Up To?," ERSA conference papers ersa05p628, European Regional Science Association. [Downloadable!]
  11. 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:
  12. Antonio Merlo & Kenneth I. Wolpin, 2008. "The Transition from School to Jail: Youth Crime and High School Completion Among Black Males," PIER Working Paper Archive 08-033, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania. [Downloadable!]
  13. Paolo Buonanno & Daniel Montolio Estivill, 2005. "Identifying the Socioeconomic Determinants of Crime in Spanish Provinces," Working Papers in Economics 138, Universitat de Barcelona. Espai de Recerca en Economia. [Downloadable!]
  14. Entorf, Horst, 2008. "Crime and the Labour Market: Evidence from a Survey of Inmates," ZEW Discussion Papers 08-131, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  15. Patrick Bayer & Randi Hjalmarsson & David Pozen, 2007. "Building Criminal Capital behind Bars: Peer Effects in Juvenile Corrections," NBER Working Papers 12932, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  16. Gabriel Chequer Hartung & Samuel Pessoa, 2007. "Fatores Demográficos Como Determinantes Da Criminalidade," Anais do XXXV Encontro Nacional de Economia [Proceedings of the 35th Brazilian Economics Meeting] 112, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
  17. 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!]
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  18. Giovanni Gallipoli & Giulio Fella, 2006. "Education and Crime over the Lifecycle," Computing in Economics and Finance 2006 192, Society for Computational Economics. [Downloadable!]
    Other versions:
  19. Shihe Fu, 2005. "What Has Been Capitalized into Property Values: Human Capital, Social Capital, or Cultural Capital?," Working Papers 05-25, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  20. Angela K. Dills & Jeffrey A. Miron & Garrett Summers, 2008. "What Do Economists Know About Crime?," NBER Working Papers 13759, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  21. Susumu Imai & Hajime Katayama & Kala Krishna, 2006. "Crime and Young Men: The Role of Arrest, Criminal Experience, and Heterogeneity," NBER Working Papers 12221, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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