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Education, Work, and Crime: Theory and Evidence

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  • Lochner, L.

Abstract

This paper develops and empirically examines a dynamic model of decisions to work, invest in human capital, and commit crime. By making all three activities endogenous, the model makes a number of new and interesting contributions to the study of crime. First, the model explains why older, more intelligent, and more educated workers tend to commit less of some property crimes than others. Second, the model is useful for analyzing the impacts of education, training, and work subsidies on criminal behavior. Third, unobserved age differences in on-the-job skill investment explain why wages and crime are more negatively correlated at older ages. Fourth, the model predicts a rise in youth crime should accompany the recent rise in returns to skills. Finally, the model suggests that law enforcement policies increase education, training and labor supply, while reducing criminal activity.

Suggested Citation

  • Lochner, L., 1999. "Education, Work, and Crime: Theory and Evidence," RCER Working Papers 465, University of Rochester - Center for Economic Research (RCER).
    • Handle: RePEc:roc:rocher:465
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    File URL: http://rcer.econ.rochester.edu/RCERPAPERS/rcer_465.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    EDUCATION ; CRIMES ; WORK;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • I10 - Health, Education, and Welfare - - Health - - - General
    • D00 - Microeconomics - - General - - - General

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