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Racial Beliefs, Location and the Causes of Crime

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Author Info
Verdier, T.
Zenou, Y.

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Abstract

The aim of this paper is to show that both location and stereotype racial beliefs matter for explaining the high criminality rate among blacks in cities. In our model, blacks and whites are identical in all respects. However, if, for no economic but for extrinsic reasons, every-body (including blacks) believes that blacks are more criminals than whites, then we show that blacks (for rational reasons) become more criminals than whites, earn lower wages and reside in ghettos located far away from legal activities. There is a vicious circle in which blacks cannot escape because both location and labor market outcomes re-inforce each other to imply high crime rates among blacks living in cities. In this context, we show that a transportation policy that sub-sidizes the ‘access’ to legal activities for blacks can lead to a sharp decrease in their crime rate.

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Publisher Info
Paper provided by Economics Division, School of Social Sciences, University of Southampton in its series Discussion Paper Series In Economics And Econometrics with number 0101.

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Date of creation: 01 Jan 2001
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Handle: RePEc:stn:sotoec:0101

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Andrea Moro & Peter Norman, . "Affirmative Action in a Competitive Economy," Penn CARESS Working Papers ca48ba70927f48a4e11034658, Penn Economics Department. [Downloadable!]
    Other versions:
  2. Freeman, Scott & Grogger, Jeffrey & Sonstelie, Jon, 1996. "The Spatial Concentration of Crime," Journal of Urban Economics, Elsevier, vol. 40(2), pages 216-231, September. [Downloadable!] (restricted)
  3. Verdier, T. & Zenou, Y., 2000. "Racial Beliefs , Location and the Causes of Crime," DELTA Working Papers 2000-26, DELTA (Ecole normale supérieure).
    Other versions:
  4. Glaeser, Edward L & Sacerdote, Bruce & Scheinkman, Jose A, 1996. "Crime and Social Interactions," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 507-48, May. [Downloadable!] (restricted)
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  5. Piketty, Thomas, 1998. "Self-fulfilling beliefs about social status," Journal of Public Economics, Elsevier, vol. 70(1), pages 115-132, October. [Downloadable!] (restricted)
  6. Glaeser, Edward L, 1998. "Are Cities Dying?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 139-60, Spring. [Downloadable!] (restricted)
  7. Richard B. Freeman, 1991. "Crime and the Employment of Disadvantaged Youths," NBER Working Papers 3875, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Dickens, William T, et al, 1989. "Employee Crime and the Monitoring Puzzle," Journal of Labor Economics, University of Chicago Press, vol. 7(3), pages 331-47, July. [Downloadable!] (restricted)
  9. Rasmusen, Eric, 1996. "Stigma and Self-Fulfilling Expectations of Criminality," Journal of Law & Economics, University of Chicago Press, vol. 39(2), pages 519-43, October.
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  10. Deutsch, Joseph & Hakim, Simon & Weinblatt, J., 1987. "A micro model of the criminal's location choice," Journal of Urban Economics, Elsevier, vol. 22(2), pages 198-208, September. [Downloadable!] (restricted)
  11. Ihlanfeldt, Keith, 2002. "Spatial mismatch in the labor market and racial differences in neighborhood crime," Economics Letters, Elsevier, vol. 76(1), pages 73-76, June. [Downloadable!] (restricted)
  12. Sah, Raaj K, 1991. "Social Osmosis and Patterns of Crime," Journal of Political Economy, University of Chicago Press, vol. 99(6), pages 1272-95, December. [Downloadable!] (restricted)
  13. Edward L. Glaeser & Matthew E. Kahn & Jordan Rappaport, 2000. "Why Do the Poor Live in Cities?," NBER Working Papers 7636, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  14. Coate, Stephen & Loury, Glenn C, 1993. "Will Affirmative-Action Policies Eliminate Negative Stereotypes?," American Economic Review, American Economic Association, vol. 83(5), pages 1220-40, December. [Downloadable!] (restricted)
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  15. George J. Mailath & Larry Samuelson & Avner Shaked, 2000. "Endogenous Inequality in Integrated Labor Markets with Two-Sided Search," American Economic Review, American Economic Association, vol. 90(1), pages 46-72, March. [Downloadable!] (restricted)
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  16. Farmer, Amy & Terrell, Dek, 1996. "Discrimination, Bayesian Updating of Employer Beliefs and Human Capital Accumulation," Economic Inquiry, Oxford University Press, vol. 34(2), pages 204-19, April.
  17. Kenneth Burdett & Ricardo Lagos & Randall Wright, 2003. "Crime, Inequality, and Unemployment," American Economic Review, American Economic Association, vol. 93(5), pages 1764-1777, December. [Downloadable!]
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  18. Acemoglu, Daron, 1995. "Public Policy in a Model of Long-Term Unemployment," Economica, London School of Economics and Political Science, vol. 62(246), pages 161-78, May. [Downloadable!] (restricted)
  19. Richard B. Freeman, 1994. "Crime and the Job Market," NBER Working Papers 4910, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  20. Yves Zenou, 2003. "The Spatial Aspects of Crime," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 459-467, 04/05. [Downloadable!] (restricted)
    Other versions:
  21. Freeman, Richard B., 1999. "The economics of crime," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 52, pages 3529-3571 Elsevier. [Downloadable!] (restricted)
  22. Grogger, Jeff, 1998. "Market Wages and Youth Crime," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 756-91, October. [Downloadable!] (restricted)
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  23. Anne C. Case & Lawrence F. Katz, 1991. "The Company You Keep: The Effects of Family and Neighborhood on Disad- vantaged Youths," NBER Working Papers 3705, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  24. Cutler, David M & Glaeser, Edward L, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 827-72, August.
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  25. Jeff Grogger & Michael Willis, 2000. "The Emergence Of Crack Cocaine And The Rise In Urban Crime Rates," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 519-529, November. [Downloadable!] (restricted)
  26. repec:att:wimass:192014 is not listed on IDEAS
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Paolo Buonanno, 2003. "The Socioeconomic Determinants of Crime. A Review of the Literature," Working Papers 63, University of Milano-Bicocca, Department of Economics, revised Nov 2003. [Downloadable!]
  2. Harris Selod & Yves Zenou, 2001. "Social Interactions, Ethnic Minorities and Urban Unemployment," Annales d'Economie et de Statistique, ADRES, issue 63-64, pages 11, Juillet-D. [Downloadable!]
    Other versions:
  3. Bunzel, Helle & Marcoul, Philippe, 2005. "On the Use of Racial Profiling as a Law Enforcement Tool," Staff General Research Papers 12397, Iowa State University, Department of Economics. [Downloadable!]
  4. Zenou, Yves, 2005. "Crime, Location and the Housing Market," Working Paper Series 651, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  5. Calvó-Armengol, Antoni & Zenou, Yves, 2003. "Social Networks and Crime Decisions: The Role of Social Structure in Facilitating Delinquent Behaviour," CEPR Discussion Papers 3966, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  6. Nicolas Marceau & Steeve Mongrain, 2007. "Competition in Law Enforcement and Capital Allocation," Discussion Papers dp07-03, Department of Economics, Simon Fraser University. [Downloadable!]
    Other versions:
  7. Coralio Ballester & Antoni Calvó-Armengol & Yves Zenou, 2009. "Delinquent Networks," CReAM Discussion Paper Series 0912, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
    Other versions:
  8. Calvó-Armengol, Antoni & Verdier, Thierry & Zenou, Yves, 2006. "Strong and Weak Ties in Employment and Crime," CEPR Discussion Papers 5448, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  9. Bunzel, H & Marcoul, P., 2003. "Can racially unbiased police perpetuate long-run discrimination?," Discussion Paper 16, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  10. Patacchini, Eleonora & Zenou, Yves, 2007. "Ethnicity and Spatial Externalities in Crime," CEPR Discussion Papers 6130, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  11. Supriya Sarnikar & Todd Sorensen & Ronald L. Oaxaca, 2007. "Do You Receive a Lighter Prison Sentence Because You Are a Woman? An Economic Analysis of Federal Criminal Sentencing Guidelines," IZA Discussion Papers 2870, Institute for the Study of Labor (IZA). [Downloadable!]
  12. Verdier, Thierry & Zenou, Yves, 2003. "Racial Beliefs, Location and the Causes of Crime," Working Paper Series 602, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  13. Zenou, Yves, 2003. "The Spatial Aspects of Crime," CEPR Discussion Papers 4028, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  14. Ballester, Coralio & Calvó-Armengol, Antoni & Zenou, Yves, 2004. "Who's Who in Crime Network. Wanted the Key Player," Working Paper Series 617, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  15. Paolo Buonanno, 2003. "Crime, Education and Peer Pressure," Working Papers 64, University of Milano-Bicocca, Department of Economics, revised Nov 2003. [Downloadable!]
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