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Inequality and Crime in Latin America and the Caribbean: New Data for and Old Question

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  • Schargrodsky, Ernesto
  • Freira, Lucía

Abstract

The purpose of this paper is to study the relationship between inequality and crime, with a focus on the Latin America and Caribbean region.We find a significant, positive, and robust association between these variables. The results persist if one instruments for inequality with historical variables in crime regressions, suggesting that a causal interpretation of the estimated effect is reasonable. Moreover, inequality is the only variable showing this robust regularity. Education levels, economic activity, income per capita, and poverty show weaker and unstable relationships with crime. The analysis of the distribution of crime victimization indicates that men and youth suffer more crime than women and the elderly. By socio-economic strata, high-income groups suffer more victimization relative to poorer groups in LAC countries, but the poor suffer more homicides.

Suggested Citation

  • Schargrodsky, Ernesto & Freira, Lucía, 2021. "Inequality and Crime in Latin America and the Caribbean: New Data for and Old Question," Research Department working papers 1786, CAF Development Bank Of Latinamerica.
    • Handle: RePEc:dbl:dblwop:1786
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    References listed on IDEAS

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    1. Levitt, Steven D, 1997. "Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime," American Economic Review, American Economic Association, vol. 87(3), pages 270-290, June.
    2. Eric Neumayer, 2005. "Inequality and Violent Crime: Evidence from Data on Robbery and Violent Theft," Journal of Peace Research, Peace Research Institute Oslo, vol. 42(1), pages 101-112, January.
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    More about this item

    Keywords

    Desarrollo; Pobreza; Políticas públicas;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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