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The deteriorating labour market conditions and crime: An analysis of Indian states during 2001-2008

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  • Abraham, Vinoj

Abstract

: Incidence of crime in India has been mounting at a fast pace , especially during the last decade. Moreover, crime on body seems to be increasing in comparison to crime on property. Economics and Sociology literature on crime attributes labour market as a transmitting institution for crime. This paper is an attempt to understand the issue of crime in India as a socio-economic problem with particular reference to the Indian labour market. I argue that the poor labour market conditions in the Indian economy that has been developing in the recent past may be a prime factor in explaining the spate of rise in crime rates recently. Panel data analysis of Indian states during the period 2001-2008 show that unemployment and wage inequality are key variables that explains the crime rate in India, especially crime on body. Education similarly seems to reduce property crime rate. Crime also seem to be deterred by an efficient judicial delivery system, however the role of police as a deterrent is ambiguous.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 31387.

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Date of creation: Mar 2011
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Handle: RePEc:pra:mprapa:31387

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Keywords: Crime; wages; unemployment; India;

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  1. Rafael Di Tella & Ernesto Schargrodsky, 2004. "Do Police Reduce Crime? Estimates Using the Allocation of Police Forces After a Terrorist Attack," American Economic Review, American Economic Association, vol. 94(1), pages 115-133, March.
  2. Richard B. Freeman, 1996. "Why Do So Many Young American Men Commit Crimes and What Might We Do About It?," NBER Working Papers 5451, National Bureau of Economic Research, Inc.
  3. Raphael, Steven & Winter-Ebmer, Rudolf, 1999. "Identifying the Effect of Unemployment on Crime," CEPR Discussion Papers 2129, C.E.P.R. Discussion Papers.
  4. Entorf, Horst & Spengler, Hannes, 1998. "Socio-economic and demographic factors of crime in Germany: evidence from panel data of the German states," ZEW Discussion Papers 98-16, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Robert Witt & Alan Clarke & Nigel Fielding, 1998. "Crime, earnings inequality and unemployment in England and Wales," Applied Economics Letters, Taylor & Francis Journals, vol. 5(4), pages 265-267.
  6. Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "What causes violent crime?," European Economic Review, Elsevier, vol. 46(7), pages 1323-1357, July.
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