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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 = Catalan Institution for Research and Advanced Studies, UT3 - Université Toulouse III - Paul Sabatier - Comue de Toulouse - Communauté d'universités et établissements de Toulouse, CEPR - Center for Economic Policy Research)

  • Thierry Verdier

    (CEPR - Center for Economic Policy Research, PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Yves Zenouc

    (CEPR - Center for Economic Policy Research, 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
    DOI: 10.1016/j.jpubeco.2006.05.011
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    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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