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Empirical analysis of income gap, financial deepening, and crime rate

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  • Zheng, Yinglong
  • Shi, Yali
  • Chen, Kun
  • Tu, Yongqian

Abstract

This paper examines the correlation between the crime rate and the urban–rural income gap and analyzes the role of financial deepening as an intermediary factor. Empirical findings indicate that there is a positive correlation between the crime rate and the urban–rural income gap. That is, an increase in the income gap leads to a rise in crime frequency. Additionally, financial deepening serves as an intermediary in the relationship between the income gap and the crime rate. Specifically, a widening income gap elevates the level of financial deepening, which in turn contributes to an increase in the crime rate.

Suggested Citation

  • Zheng, Yinglong & Shi, Yali & Chen, Kun & Tu, Yongqian, 2025. "Empirical analysis of income gap, financial deepening, and crime rate," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s154461232500683x
    DOI: 10.1016/j.frl.2025.107423
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    References listed on IDEAS

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