Crime and the Labor Market
AbstractThe same policies or technological changes that affect the labor market can also affect the extent of criminal activities. For instance, while an increase in unemployment benefits can raise unemployment duration it may also reduce crimes by unemployed. Or, a technological change in the home sector that affects participation in the market may also raise participation in criminal activities. To analyze these interactions we construct a search-theoretic model where labor market outcomes and crimes are determined jointly. The description of the labor market follows Pissarides' (2000) canonical model of unemployment extended to account for decisions to participate in the labor force. We introduce random arrivals of crime opportunities for all individuals irrespective of their labor market status. Furthermore, we allow for optimal employment contracts that internalize the effect of crime activities on job duration. We calibrate our model to US data focusing on females. We investigate whether the change in preferences for market activities that is necessary to account for female labor force participation can also account for the substantial increase in female crime over the last half century. We also look at the effects of unemployment insurance, workers' bargaining power, skill-biased technological progress and the availability of crime opportunities
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Society for Economic Dynamics in its series 2006 Meeting Papers with number 48.
Date of creation: 03 Dec 2006
Date of revision:
Contact details of provider:
Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
Web page: http://www.EconomicDynamics.org/society.htm
More information through EDIRC
crime; labor force participation;
Find related papers by JEL classification:
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Bryan Engelhardt, 2008. "The Effect of Employment Frictions on Crime: Theory and Estimation," Working Papers 0805, College of the Holy Cross, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann).
If references are entirely missing, you can add them using this form.