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Crime, inequality and subsidized housing: Evidence from South Africa

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  • Manea, Roxana Elena
  • Piraino, Patrizio
  • Viarengo, Martina

Abstract

We study the relationship between housing inequality and crime in South Africa. We create a novel panel dataset combining information on crime at the police station level with census data. Our analysis shows that housing inequality explains a significant share of the variation in both property and violent crimes, net of spillover effects, time and district fixed effects. An increase of roughly one standard deviation in housing inequality explains 10–12 percent of total crime increases. Additionally, we analyze a prominent housing program for low-income South Africans to show that policies that decrease inequality in housing conditions may also reduce crime. We suggest that these policies can help mitigate the societal and individual strains that are often correlated with criminal engagement.

Suggested Citation

  • Manea, Roxana Elena & Piraino, Patrizio & Viarengo, Martina, 2023. "Crime, inequality and subsidized housing: Evidence from South Africa," World Development, Elsevier, vol. 168(C).
    • Handle: RePEc:eee:wdevel:v:168:y:2023:i:c:s0305750x2300061x
    DOI: 10.1016/j.worlddev.2023.106243
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    1. Brüderle, Mirjam Anna & Peters, Jörg & Roberts, Gareth, 2022. "Weather and crime: Cautious evidence from South Africa," Ruhr Economic Papers 940, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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    More about this item

    Keywords

    Inequality; Crime; Economic development;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law

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