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Unemployment and crime: New evidence for an old question

Author

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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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    Citations

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    Cited by:

    1. 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, Population Studies Centre.
    2. Mustard, David B., 2010. "How Do Labor Markets Affect Crime? New Evidence on an Old Puzzle," IZA Discussion Papers 4856, Institute for the Study of Labor (IZA).
    3. 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.
    4. M. Caridad Araujo & Pedro Carneiro & Yyannú Cruz-Aguayo & Norbert Schady, 2016. "Teacher Quality and Learning Outcomes in Kindergarten," The Quarterly Journal of Economics, Oxford University Press, pages 1415-1453.
    5. 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.
    6. repec:kap:ejlwec:v:45:y:2018:i:1:d:10.1007_s10657-016-9526-3 is not listed on IDEAS
    7. 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), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 2(2), pages 51-64, December.
    8. 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.
    9. Martin Nordin & Daniel Almén, 2017. "Long-term unemployment and violent crime," Empirical Economics, Springer, vol. 52(1), pages 1-29, February.
    10. 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.

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