IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper

Racial Beliefs, Location And The Causes Of Crime

  • Verdier, Thierry
  • Zenou, Yves

The aim of this paper is to show that both location and stereotypical racial beliefs matter for explaining the high criminality rate among blacks in cities. In our model, blacks and whites are identical in all respects. However, if, for not economic but extrinsic reasons, everybody (including blacks) believes that more blacks become criminals than whites, then we show that more blacks (for rational reasons) become criminals than whites, earn lower wages and reside in ghettos located far away from legal activities. There is a vicious circle in which blacks cannot escape because both location and labour market outcomes reinforce each other to imply high crime rates among blacks living in cities. This is referred to as the discriminating equilibrium. If there are no such beliefs in the economy, then another equilibrium emerges in which blacks and whites experience the same labour market and crime outcomes and live together. This is referred to as the non-discriminating equilibrium. The key feature of this belief-based model is that multiple equilibria are sustainable only because of space. Indeed, since location is endogeneous, workers who are believed to be criminals have less incentives to locate close to jobs. Since workers that are located further away from jobs have a lower net wage, their risk of capture is lower and hence the incidence of crime is greater. Consequently, if there were no spatial dimension in this economy so that all workers were residing in the same location, multiple equilibria would not emerge and the only sustainable equilibrium would be the non-discriminating one, even if all agents believe that more blacks are criminals than whites. In other words, beliefs alone cannot generate the discriminating equilibrium; it is the presence of both 'negative' beliefs and 'bad' locations that allow the discriminating equilibrium to exist. It is thus our contention that location and beliefs play a major role in explaining the high criminality rate among blacks.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=2455
Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2455.

as
in new window

Length:
Date of creation: May 2000
Date of revision:
Handle: RePEc:cpr:ceprdp:2455
Contact details of provider: Postal:
Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.

Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820

Order Information: Email:


References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Edward L. Glaeser & Bruce Sacerdote & Jose A. Scheinkman, 1995. "Crime and Social Interactions," NBER Working Papers 5026, National Bureau of Economic Research, Inc.
  2. Moro,A. & Norman,P., 2001. "A general equilibrium model of statistical discrimination," Working papers 4, Wisconsin Madison - Social Systems.
  3. Rasmusen, E., 1992. "Stigma and Self-Fulfilling Expectations of Criminality," Papers 92-019, Indiana - Center for Econometric Model Research.
  4. Verdier, T. & Zenou, Y., 2000. "Racial Beliefs , Location and the Causes of Crime," DELTA Working Papers 2000-26, DELTA (Ecole normale supérieure).
  5. Sah, Raaj K, 1991. "Social Osmosis and Patterns of Crime," Journal of Political Economy, University of Chicago Press, vol. 99(6), pages 1272-95, December.
  6. Jeff Grogger & Michael Willis, 2000. "The Emergence Of Crack Cocaine And The Rise In Urban Crime Rates," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 519-529, November.
  7. Ihlanfeldt, Keith, 2002. "Spatial mismatch in the labor market and racial differences in neighborhood crime," Economics Letters, Elsevier, vol. 76(1), pages 73-76, June.
  8. Case, A.C. & Katz, L.F., 1991. "The Company You Keep: The Effects Of Family And Neighborhood On Disadvantaged Younths," Harvard Institute of Economic Research Working Papers 1555, Harvard - Institute of Economic Research.
  9. George J. Mailath & Larry Samuelson & Avner Shaked, . "Endogenous Inequality in Integrated Labor Markets with Two-sided Search," Penn CARESS Working Papers 90ff654ed11b714e3f7530c57, Penn Economics Department.
  10. Dickens, William T, et al, 1989. "Employee Crime and the Monitoring Puzzle," Journal of Labor Economics, University of Chicago Press, vol. 7(3), pages 331-47, July.
  11. Gary S. Becker, 1968. "Crime and Punishment: An Economic Approach," Journal of Political Economy, University of Chicago Press, vol. 76, pages 169.
  12. Edward L. Glaeser, 1998. "Are Cities Dying?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 139-160, Spring.
  13. Fujita,Masahisa, 1989. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521346627, June.
  14. Richard B. Freeman, 1994. "Crime and the Job Market," NBER Working Papers 4910, National Bureau of Economic Research, Inc.
  15. Coate, Stephen & Loury, Glenn C, 1993. "Will Affirmative-Action Policies Eliminate Negative Stereotypes?," American Economic Review, American Economic Association, vol. 83(5), pages 1220-40, December.
  16. Jeff Grogger, 1997. "Market Wages and Youth Crime," NBER Working Papers 5983, National Bureau of Economic Research, Inc.
  17. Kenneth Burdett & Ricardo Lagos & Randall Wright, 2003. "Crime, Inequality, and Unemployment," American Economic Review, American Economic Association, vol. 93(5), pages 1764-1777, December.
  18. Zenou, Yves, 2003. "The Spatial Aspects of Crime," CEPR Discussion Papers 4028, C.E.P.R. Discussion Papers.
  19. Edward L. Glaeser & Bruce Sacerdote, 1999. "Why Is There More Crime in Cities?," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S225-S258, December.
  20. Richard B. Freeman, 1991. "Crime and the Employment of Disadvantaged Youths," NBER Working Papers 3875, National Bureau of Economic Research, Inc.
  21. David M. Cutler & Edward L. Glaeser, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, Oxford University Press, vol. 112(3), pages 827-872.
  22. Andrea Moro & Peter Norman, . "Affirmative Action in a Competitive Economy," Penn CARESS Working Papers ca48ba70927f48a4e11034658, Penn Economics Department.
  23. Freeman, Richard B., 1999. "The economics of crime," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 52, pages 3529-3571 Elsevier.
  24. Freeman, Scott & Grogger, Jeffrey & Sonstelie, Jon, 1996. "The Spatial Concentration of Crime," Journal of Urban Economics, Elsevier, vol. 40(2), pages 216-231, September.
  25. Deutsch, Joseph & Hakim, Simon & Weinblatt, J., 1987. "A micro model of the criminal's location choice," Journal of Urban Economics, Elsevier, vol. 22(2), pages 198-208, September.
  26. Piketty, Thomas, 1998. "Self-fulfilling beliefs about social status," Journal of Public Economics, Elsevier, vol. 70(1), pages 115-132, October.
  27. Jens Otto Ludwig & Greg Duncan & Paul Hirschfield, 2000. "Urban Poverty and Juvenile Crime: Evidence from a Randomized Housing-Mobility Experiment," JCPR Working Papers 158, Northwestern University/University of Chicago Joint Center for Poverty Research.
  28. Farmer, Amy & Terrell, Dek, 1996. "Discrimination, Bayesian Updating of Employer Beliefs and Human Capital Accumulation," Economic Inquiry, Western Economic Association International, vol. 34(2), pages 204-19, April.
  29. Acemoglu, Daron, 1995. "Public Policy in a Model of Long-Term Unemployment," Economica, London School of Economics and Political Science, vol. 62(246), pages 161-78, May.
  30. Edward L. Glaeser & Matthew E. Kahn & Jordan Rappaport, 2000. "Why Do the Poor Live in Cities?," NBER Working Papers 7636, National Bureau of Economic Research, Inc.
  31. Scott South & Kyle Crowder, 1997. "Residential mobility between cities and suburbs: race, suburbanization, and back-to-the-city moves," Demography, Springer;Population Association of America (PAA), vol. 34(4), pages 525-538, November.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:2455. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.