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Immigration and Crime in Frictional Labor Markets

Author

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  • Shiyun Zhang

    (Aarhus University)

Abstract

This paper studies the relationship between immigration and crime by applying the Engelhardt et al. (2008) crime model. Although the relationship between immigration and crime has been widely debated, there is no theoretical explanation that can define the impact of immigration on crime. This model constructs two channels through which immigrants affect the host country's crime rate: composition (direct) channel and labor market (indirect) channel. These two channels provide explanations for the ambiguity of immigration effects on crime rates. An extension of the model with skill bias and imperfect substitution between skilled and unskilled labor has more sophisticated numerical results based on the United States (U.S.) labor market and immigration. A more generous unemployment insurance system for immigrants increases both the unemployment and crime rates. An extended period of incarceration and a deportation policy reduce crime rates but have no significant impact on labor market outcomes. (Copyright: Elsevier)

Suggested Citation

  • Shiyun Zhang, . "Immigration and Crime in Frictional Labor Markets," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics.
  • Handle: RePEc:red:issued:18-538
    DOI: 10.1016/j.red.2021.02.011
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    More about this item

    Keywords

    Immigration; Crimes; Search and matching; Unemployment;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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