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Crime and local inequality in South Africa

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  • Demombynes, Gabriel
  • Ozler, Berk

Abstract

The authors examine the effects of local inequality on property and violent crime in South Africa. Their findings are consistent with economic theories relating inequality to property crime, and also with sociological theories that imply that inequality leads to crime in general. Burglary rates are 20-30 percent higher in police station jurisdictions that are the wealthiest among their neighbors, suggesting that criminals travel to neighborhoods where the expected returns from burglary are highest. The authors do not find evidence that inequality between racial groups fosters interpersonal conflict at the local level.
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Suggested Citation

  • Demombynes, Gabriel & Ozler, Berk, 2005. "Crime and local inequality in South Africa," Journal of Development Economics, Elsevier, vol. 76(2), pages 265-292, April.
  • Handle: RePEc:eee:deveco:v:76:y:2005:i:2:p:265-292
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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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