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Strong and Weak Ties in Employment and Crime

Author

Listed:
  • Antoni Calvó-Armengol

    (ICREA - Institució Catalana de Recerca i Estudis Avançats, UPS - Université Toulouse III - Paul Sabatier - Université Fédérale Toulouse Midi-Pyrénées, CEPR - Center for Economic Policy Research - CEPR)

  • Thierry Verdier

    (CEPR - Center for Economic Policy Research - CEPR, PJSE - Paris-Jourdan Sciences Economiques - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - EHESS - École des hautes études en sciences sociales - ENS Paris - École normale supérieure - Paris, PSE - Paris School of Economics)

  • Yves Zenouc

    (CEPR - Center for Economic Policy Research - CEPR, GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université, The Research Institute of Industrial Economics - The Research Institute of Industrial Economics)

Abstract

This paper analyzes the interplay between social structure and information exchange in two competing activities, crime and labor. We consider a dynamic model in which individuals belong to mutually exclusive two-person groups, referred to as dyads. There are multiple equilibria. If jobs are badly paid and/or crime is profitable, unemployment benefits have to be low enough to prevent workers for staying too long in the unemployment status because they are vulnerable to crime activities. If, instead, jobs are well paid and/or crime is not profitable, unemployment benefits have to be high enough to induce workers to stay unemployed rather to commit crime because they are less vulnerable to crime activities. Also, in segregated neighborhoods characterized by high interactions between peers, a policy only based on punishment and arrest will not be efficient in reducing crime. It has to be accompanied by other types of policies that take into account social interactions.

Suggested Citation

  • Antoni Calvó-Armengol & Thierry Verdier & Yves Zenouc, 2007. "Strong and Weak Ties in Employment and Crime," Post-Print halshs-00754247, HAL.
  • Handle: RePEc:hal:journl:halshs-00754247
    Note: View the original document on HAL open archive server: https://hal-pjse.archives-ouvertes.fr/halshs-00754247
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Social interactions; Crime; Labor market; Forward-looking agents;

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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