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Unemployment and crime: New evidence for an old question

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  • Kerry Papps
  • Rainer Winkelmann

Abstract

This paper uses panel data techniques to examine the relationship between unemployment and a range of categories of crime in New Zealand. The data set covers sixteen regions over the period 1984 to 1996. Random and fixed effects models are estimated to investigate the possibility of a causal relationship between unemployment and crime. Hypothesis tests show that two-way fixed effects models should be used. The regression results provide some evidence for significant effects of unemployment on crime, both for total crime and for some subcategories of crime.

Suggested Citation

  • Kerry Papps & Rainer Winkelmann, 2000. "Unemployment and crime: New evidence for an old question," New Zealand Economic Papers, Taylor & Francis Journals, vol. 34(1), pages 53-71.
    • Handle: RePEc:taf:nzecpp:v:34:y:2000:i:1:p:53-71
    DOI: 10.1080/00779950009544315
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    References listed on IDEAS

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    1. Entorf, Horst & Spengler, Hannes, 2000. "Socioeconomic and demographic factors of crime in Germany: Evidence from panel data of the German states," International Review of Law and Economics, Elsevier, vol. 20(1), pages 75-106, March.
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    Cited by:

    1. Lydia Cheung & Philip Gunby, 2022. "Crime and mobility during the COVID-19 lockdown: a preliminary empirical exploration," New Zealand Economic Papers, Taylor & Francis Journals, vol. 56(1), pages 106-113, January.
    2. Troy Lorde & Mahalia Jackman & Simon Naitram & Shane Lowe, 2016. "Does crime depend on the “state” of economic misery?," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 43(11), pages 1124-1134, November.
    3. Ian Pool & Sandra Baxendine & William Cochrane & James Lindop, 2006. "New Zealand Regions, 1986-2001: Dependency and Development of Social Capital," Population Studies Centre Discussion Papers dp-62, University of Waikato, Te Ngira Institute for Population Research.
    4. Mustard, David B., 2010. "How Do Labor Markets Affect Crime? New Evidence on an Old Puzzle," IZA Discussion Papers 4856, Institute of Labor Economics (IZA).
    5. Eide, Erling & Rubin, Paul H. & Shepherd, Joanna M., 2006. "Economics of Crime," Foundations and Trends(R) in Microeconomics, now publishers, vol. 2(3), pages 205-279, December.
    6. Montolio, Daniel, 2016. "The Unintended Consequences on Crime of "Pennies from Heaven"," IDB Publications (Working Papers) 7431, Inter-American Development Bank.
    7. Rafael Di Tella & Sebastian Galiani & Ernesto Schargrodsky, 2010. "Crime Distribution and Victim Behavior during a Crime Wave," NBER Chapters, in: The Economics of Crime: Lessons For and From Latin America, pages 175-204, National Bureau of Economic Research, Inc.
    8. Manash Ranjan Gupta & Priya Brata Dutta, 2024. "Crime, efficiency of labour and trade: a theoretical analysis," Indian Economic Review, Springer, vol. 59(1), pages 105-136, June.
    9. Karin Edmark, 2005. "Unemployment and Crime: Is There a Connection?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(2), pages 353-373, June.
    10. Montolio, Daniel, 2018. "The effects of local infrastructure investment on crime," Labour Economics, Elsevier, vol. 52(C), pages 210-230.
    11. Alexi Thompson & James J. Jozefowicz, 2024. "Euro switch, economic growth, and property crimes in Europe," International Economics and Economic Policy, Springer, vol. 21(2), pages 343-362, May.
    12. Paul Anthony Mariadas & Hafizah Hammad Ahmad Khan & Muthaloo Subramaniam & Uma Murthy & Amira Mas Ayu Amir Mustafa & Siti Nurul Munawwarah Roslan, 2025. "Effects of macroeconomic factors on property crime in Malaysia: new evidence from the FMOLS method," Economics Bulletin, AccessEcon, vol. 45(1), pages 638-652.
    13. Kangoh Lee, 2018. "Unemployment and crime: the role of apprehension," European Journal of Law and Economics, Springer, vol. 45(1), pages 59-80, February.
    14. Chletsos, Michael & Sintos, Andreas, 2023. "The effects of IMF conditional programs on the unemployment rate," European Journal of Political Economy, Elsevier, vol. 76(C).
    15. Nikolaos Dritsakis & Alexandros Gkanas, 2009. "The effect of socio-economic determinants on crime rates: An empirical research in the case of Greece with cointegration analysis," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 2(2), pages 51-64, December.
    16. Almén, Daniel & Nordin, Martin, 2011. "Long term unemployment and violent crimes - using post-2000 data to reinvestigate the relationship between unemployment and crime," Working Papers 2011:34, Lund University, Department of Economics.
    17. Martin Nordin & Daniel Almén, 2017. "Long-term unemployment and violent crime," Empirical Economics, Springer, vol. 52(1), pages 1-29, February.
    18. Rafael Di Tella & Sebastian Galiani & Ernesto Schargrodsky, 2006. "Crime Distribution & Victim Behavior During a Crime Wave," William Davidson Institute Working Papers Series wp849, William Davidson Institute at the University of Michigan.
    19. Anna Rita Germani & Angelo Castaldo & Alan Ker, 2024. "Carrots, sticks, and environmental crime in Italy," European Journal of Law and Economics, Springer, vol. 58(2), pages 201-219, October.
    20. Michael Appiah‐Kubi & Jeneshia Jarrett, 2023. "Chinese aid and crime: Evidence from Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 1619-1647, October.
    21. Dmitry Burakov, 2019. "Oil Hikes, Drugs and Bribes: Do Oil Prices Matter for Crime Rate in Russia?," International Journal of Energy Economics and Policy, Econjournals, vol. 9(1), pages 84-94.

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