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Crime scars: recessions and the making of career criminals

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  • Bell, Brian
  • Bindler, Anna
  • Machin, Stephen

Abstract

Recessions lead to short-term job loss, lower happiness, and decreasing income levels. There is growing evidence that workers who first join the labor market during economic downturns suffer from poor job matches that can have sustained detrimental effects on wages and career progressions. This paper uses U.S. and U.K. data to document a more disturbing long-run effect of recessions: young people who leave school during recessions are significantly more likely to lead a life of crime than those entering a buoyant labor market. Thus, crime scars resulting from higher entry-level unemployment rates prove to be long lasting and substantial.

Suggested Citation

  • Bell, Brian & Bindler, Anna & Machin, Stephen, 2018. "Crime scars: recessions and the making of career criminals," LSE Research Online Documents on Economics 89715, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:89715
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    References listed on IDEAS

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    More about this item

    Keywords

    Crime; Recessions; Unemployment;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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