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Occupation, Race, Unemployment and Crime In a Dynamic System

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  • Michael Massourakis
  • Farahmand Rezvani
  • Tadashi Yamada
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    Abstract

    Inthis paper, the relationship between unemployment and property crime is investigated in the context of dynamic system by using quarterly time series data for the United States during the period of 1973 (I) —1981(IV). The results of Granger's causality tests indicate that unemployment by occupation (white and blue collars) is significantly associated with robbery, which is the most serious property crime. Unemployment by race (white, black, and Hispanic) also supports the above finding. In general, the linkage between unemployment rate and property crime seems to become stronger as the degree of seriousness of crime increases.The findings of the dynamic system show that blue collar, Hispanic, and black unemployment rates have persistently positive effects on robbery.Therefore, these above findings suggest that any attempt to reduce property crime through alleviation of unemployment would most efficiently be directed towards specific categories of the labor force.

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    File URL: http://www.nber.org/papers/w1256.pdf
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    Bibliographic Info

    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 1256.

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    Date of creation: Jan 1984
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    Handle: RePEc:nbr:nberwo:1256

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    1. Gary S. Becker, 1995. "The economics of crime," Cross Sections, Federal Reserve Bank of Richmond, issue Fall, pages 8-15.
    2. Richard B. Freeman, 1982. "Crime and the Labor Market," NBER Working Papers 1031, National Bureau of Economic Research, Inc.
    3. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
    4. Phillips, Llad, et al, 1972. "Crime, Youth, and the Labor Market," Journal of Political Economy, University of Chicago Press, vol. 80(3), pages 491-504, May-June.
    5. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-38, July.
    6. Belton M. Fleisher, 1963. "The Effect of Unemployment on Juvenile Delinquency," Journal of Political Economy, University of Chicago Press, vol. 71, pages 543.
    7. Alan S. Blinder, 1984. "On the Monetization of Deficits," NBER Working Papers 1052, National Bureau of Economic Research, Inc.
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