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Unemployment insurance generosity and crime

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  • Hamid NoghaniBehambari
  • Bitran Maden

Abstract

Previous studies show that unemployment has a positive effect on crime rates; however, unemployment insurance (UI) benefits could mitigate these effects. Using county-level unemployment and crime data and taking advantage of the UI law changes across states and over time (1990–2016), we provide new evidence that the UI benefits act as a buffer against local labour market shocks. A one-standard-deviation increase in benefits is associated with 2.4% and 1.9% lower property and violent crime rates for a county at average unemployment.

Suggested Citation

  • Hamid NoghaniBehambari & Bitran Maden, 2021. "Unemployment insurance generosity and crime," Applied Economics Letters, Taylor & Francis Journals, vol. 28(13), pages 1076-1081, July.
  • Handle: RePEc:taf:apeclt:v:28:y:2021:i:13:p:1076-1081
    DOI: 10.1080/13504851.2020.1798337
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    Cited by:

    1. Zhang Yu & Muhammad Umer Quddoos & Syed Abdul Rehman Khan & Muhammad Munir Ahmad & Laeeq Razzak Janjua & Muhammad Sajid Amin & Abdul Haseeb, 2023. "Investigating the moderating impact of crime and corruption on the economic growth of Bangladesh: Fresh insights," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 26(2), pages 185-207, June.
    2. Lonnie R. Snowden, 2023. "US states' racial bias correlates with less SNAP participation by “undeserving poor” adults and lower unemployment benefit maximums," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 133-149, June.

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