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Crime, Immigration and the Labor Market: A General Equilibrium Model

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  • Thomas Bassetti, Luca Corazzini, Darwin Cortes

Abstract

Does immigration cause crime? To answer this question, we build a two-country general equilibrium model with search costs in which the migration (in/out-)flows, the crime rates and the equilibrium wages in the two countries are determined by the interaction between the labor market, the crime market and the decision to migrate. The main result of our model is that, in equilibrium, the relationship between immigration and crime depends on the conditions of both the labor and crime markets of the two countries. In particular, when the tightness of the labor market is sufficiently elastic relative to that of the crime market, immigration causes a reduction in the domestic crime rate of the host country. An implication of this result is that migration flows from countries with strong work rigidities to societies characterized by more elastic labor markets are mutually benefic in terms of reducing the corresponding crime rates.

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File URL: ftp://ftp.unibocconi.it/pub/RePEc/slp/papers/islawp38.pdf
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Bibliographic Info

Paper provided by ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy in its series ISLA Working Papers with number 38.

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Length: 44 pages
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:slp:islawp:islawp38

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Related research

Keywords: Crime Rate; Labor Market; Immigration.;

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References

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  1. Bianchi, Milo & Buonanno, Paolo & Pinotti, Paolo, 2010. "Do Immigrants Cause Crime?," CEPREMAP Working Papers (Docweb) 1023, CEPREMAP.
  2. 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.
  3. Carolyn Moehling & Anne Morrison Piehl, 2007. "Immigration and Crime in Early 20th Century America," NBER Working Papers 13576, National Bureau of Economic Research, Inc.
  4. Kenneth Burdett & Ricardo Lagos & Randall Wright, 2002. "Crime, Inequality, and Unemployment, Second Version," PIER Working Paper Archive 03-029, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Sep 2003.
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