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Crime, Education and Peer Pressure

  • Paolo Buonanno

    ()

    (Università degli Studi di Bergamo)

We present a dynamic two-period model of individual behaviour with heterogeneous agents in which individuals decide how to allocate their disposable time between education, crime and work in the legal sector. Education has a twofold effect: it implies higher expected wages in the legal sector, increasing the opportunity cost of committing crime and it has a sort of "civilization" effect that makes more costly to engage in criminal activities. We model this effect by introducing a peer pressure function.

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Article provided by SIPI Spa in its journal Rivista di Politica Economica.

Volume (Year): 96 (2006)
Issue (Month): 5 (September-October)
Pages: 89-110

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Handle: RePEc:rpo:ripoec:v:96:y:2006:i:5:p:89-110
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