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Education and Crime over the Life Cycle

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  • Giulio Fella
  • Giovanni Gallipoli

Abstract

We compare two large-scale policy interventions aimed at reducing crime: subsidizing high school completion and increasing the length of prison sentences. To this purpose we use a life-cycle model with endogenous education and crime choices. We apply the model to property crime and calibrate it to U.S. data. We find that targeting crime reductions through increases in high school graduation rates entails large efficiency and welfare gains. These gains are absent if the same crime reduction is achieved by increasing the length of sentences. We also find that general equilibrium effects explain roughly one half of the reduction in crime from subsidizing high school.

Suggested Citation

  • Giulio Fella & Giovanni Gallipoli, 2014. "Education and Crime over the Life Cycle," Review of Economic Studies, Oxford University Press, vol. 81(4), pages 1484-1517.
  • Handle: RePEc:oup:restud:v:81:y:2014:i:4:p:1484-1517
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    File URL: http://hdl.handle.net/10.1093/restud/rdu014
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    16. Donghoon Lee & Kenneth I. Wolpin, 2006. "Intersectoral Labor Mobility and the Growth of the Service Sector," Econometrica, Econometric Society, vol. 74(1), pages 1-46, January.
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    Cited by:

    1. Ana Maria Ibanez & Catherine Rodriguez & David Zarruk, 2013. "Crime, Punishment, and Schooling Decisions: Evidence from Colombian Adolescents," Research Department Publications IDB-WP-413, Inter-American Development Bank, Research Department.
    2. Tony Beatton & Michael P. Kidd & Stephen Machin & Dipa Sarkar, 2016. "Larrikin Youth: New Evidence on Crime and Schooling," CEP Discussion Papers dp1456, Centre for Economic Performance, LSE.
    3. Deiana, C, 2016. "Local Labour Market Effects of Unemployment on Crime Induced by Trade Shocks," Economics Discussion Papers 16529, University of Essex, Department of Economics.
    4. Steve Brito & Ana Corbacho & Rene Osorio Rivas, 2014. "Remittances and the Impact on Crime in Mexico," IDB Publications (Working Papers) 85093, Inter-American Development Bank.
    5. Paul Heaton, 2008. "Childhood Educational Disruption and Later Life Outcomes Evidence from Prince Edward County," Working Papers WR-552, RAND Corporation.
    6. Meghir, Costas & Palme, Mårten & Schnabel, Marieke, 2011. "The Effect of Education Policy on Crime: An Intergenerational Perspective," IZA Discussion Papers 6142, Institute for the Study of Labor (IZA).
    7. Ana Maria Ibanez & Catherine Rodriguez & David Zarruk, 2013. "Crime, Punishment, and Schooling Decisions: Evidence from Colombian Adolescents," Research Department Publications IDB-WP-413, Inter-American Development Bank, Research Department.
    8. Denis Fougère & Francis Kramarz & Julien Pouget, 2009. "Youth Unemployment and Crime in France," Journal of the European Economic Association, MIT Press, vol. 7(5), pages 909-938, September.
    9. Matthew Calver, 2015. "Closing the Aboriginal Education Gap in Canada: Assessing Progress and Estimating the Economic Benefits," CSLS Research Reports 2015-03, Centre for the Study of Living Standards.
    10. Francesco Drago & Roberto Galbiati & Pietro Vertova, 2011. "Prison Conditions and Recidivism," American Law and Economics Review, Oxford University Press, vol. 13(1), pages 103-130.
    11. Cecilia Alonso, 2018. "Transferencias Monetarias y Crimen. Evidencia para la última década en Montevideo," Documentos de Investigación Estudiantil (students working papers) 18-02, Instituto de Economía - IECON.
    12. Ayesha Haider & Amjad Ali, 2015. "Socio-Economic Determinants of Crimes: A Cross-Sectional Study of Punjab Districts," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(11), pages 550-560, November.
    13. Bratsberg, Bernt & Hernaes, Øystein & Markussen, Simen & Raaum, Oddbjørn & Røed, Knut, 2018. "Welfare Activation and Youth Crime," IZA Discussion Papers 11719, Institute for the Study of Labor (IZA).
    14. repec:sbe:breart:v:29:y:2009:i:2:a:3441 is not listed on IDEAS
    15. Giulio Fella, 2011. "A Generalized Endogenous Grid Method for Non-concave Problems," Working Papers 677, Queen Mary University of London, School of Economics and Finance.
    16. Chakravarty,Shubha & Lundberg,Mattias K. A. & Nikolov, Plamen V. & Zenker,Juliane & Chakravarty,Shubha & Lundberg,Mattias K. A. & Zenker,Juliane & Nikolov, Plamen V., 2016. "The role of training programs for youth employment in Nepal : impact evaluation report on the employment fund," Policy Research Working Paper Series 7656, The World Bank.
    17. Merlo, Antonio & Wolpin, Kenneth I., 2015. "The transition from school to jail: Youth crime and high school completion among black males," European Economic Review, Elsevier, vol. 79(C), pages 234-251.

    More about this item

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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