Crime, Job Searches, and Economic Growth
This paper constructs a theoretical model with which to analyze the puzzling links between unemployment and crime rates, described in the literature. Most theoretical papers on crime, such as Becker Journal of Political Economy 76, 169–217, ( 1968 ), Ehrlich Journal of Political Economy 81, 521–565, ( 1973 ), and İmrohoroğlu et al. International Economic Review 41, 1–25, ( 2000 ), emphasize the analysis of the equilibrium crime rate, dealing with the unemployment rate as an exogenous parameter, but little attention has been devoted to investigating the influence of the criminal market on the equilibrium unemployment rate in the labor market and how these markets interact. This paper illustrates how the causes of crime play a crucial role in the unemployment-crime relationship, wherein different causality result in different associative relationships between unemployment and crime. The aforementioned conclusion illustrates the theory explaining why the empirical findings related to the unemployment-crime relationship are mixed and equivocal. Second, this paper describes the diverse origins of crime, in which employed workers and unemployed workers have different incentives for entering a life of crime. Employed and unemployed workers assume different opportunity costs by engaging in criminal activities, resulting in different effects on the economy. This explains why crime rates relative to unemployment rates in different countries could be either procyclical or countercyclical. Copyright International Atlantic Economic Society 2012
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 40 (2012)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://www.springer.com|
Postal:Suite 650, International Tower, 229 Peachtree Street, N.E., Atlanta, GA 30303
Phone: (404) 965-1555
Fax: (404) 965-1556
Web page: http://www.iaes.org/
More information through EDIRC
|Order Information:||Web: http://www.springer.com/economics/journal/11293/PS2|
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.:
- Gary S. Becker, 1968.
"Crime and Punishment: An Economic Approach,"
Journal of Political Economy,
University of Chicago Press, vol. 76, pages 169.
- Benhabib, Jess & Farmer, Roger E.A., 1991.
"Indeterminacy and Increasing Returns,"
91-59, C.V. Starr Center for Applied Economics, New York University.
- Bean, Charles & Pissarides, Christopher, 1993.
"Unemployment, consumption and growth,"
European Economic Review,
Elsevier, vol. 37(4), pages 837-854, May.
- Imrohoroglu, Ayse & Merlo, Antonio & Rupert, Peter, 1996.
"On the political economy of income redistribution and crime,"
7497, University of Minnesota, Economic Development Center.
- Imrohoroglu, Ayse & Merlo, Antonio & Rupert, Peter, 2000. "On the Political Economy of Income Redistribution and Crime," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 41(1), pages 1-25, February.
- Ayse Imrohoroglu & Antonio Merlo & Peter Rupert, 1996. "On the political economy of income redistribution and crime," Working Paper 9609, Federal Reserve Bank of Cleveland.
- Ayse Imrohoroglu & Antonio Merlo & Peter Rupert, 1996. "On the political economy of income redistribution and crime," Staff Report 216, Federal Reserve Bank of Minneapolis.
- Oliver Jean Blanchard & Peter Diamond, 1989. "The Beveridge Curve," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1), pages 1-76.
- Casey B. Mulligan & Xavier Sala-i-Martin, 1993. "Transitional Dynamics in Two-Sector Models of Endogenous Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 739-773.
- Kenneth Burdett & Ricardo Lagos & Randall Wright, 2004.
"An On-The-Job Search Model Of Crime, Inequality, And Unemployment,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 681-706, 08.
- Kenneth Burdett & Ricardo Lagos & Randall Wright, 2003. "An On-the-Job Search Model of Crime, Inequality, and Unemployment," PIER Working Paper Archive 03-030, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Wu, Yangru & Zhang, Junxi, 1998. "Endogenous growth and the welfare costs of inflation: a reconsideration," Journal of Economic Dynamics and Control, Elsevier, vol. 22(3), pages 465-482, March.
- Robert J. Barro, 2012.
"Inflation and Economic Growth,"
CEMA Working Papers
568, China Economics and Management Academy, Central University of Finance and Economics.
- Aghion, Philippe & Howitt, Peter, 1991.
"Growth and Unemployment,"
CEPR Discussion Papers
577, C.E.P.R. Discussion Papers.
- Isaac Ehrlich, 1996. "Crime, Punishment, and the Market for Offenses," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 43-67, Winter.
- Palokangas, Tapio, 1996. "Endogenous growth and collective bargaining," Journal of Economic Dynamics and Control, Elsevier, vol. 20(5), pages 925-944, May.
- Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-65, May-June.
When requesting a correction, please mention this item's handle: RePEc:kap:atlecj:v:40:y:2012:i:1:p:3-19. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.