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Racial Beliefs, Location and the Causes of Crime

  • Verdier, Thierry

    ()

    (DELTA-ENS)

  • Zenou, Yves

    ()

    (The Research Institute of Industrial Economics)

This paper provides a unified explanation for why blacks commit more crime, are located in poorer neighborhoods and receive lower wages than whites. If everybody believes that blacks are more criminal than whites - even if there is no basis for this - then blacks are offered lower wages and, as a result, locate further away from jobs. Distant residence increases even more the black-white wage gap because of more tiredness and higher commuting costs. Blacks have thus a lower opportunity cost of committing crime and become indeed more criminal than whites. Therefore beliefs are self-fulfilling.

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Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 602.

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Length: 39 pages
Date of creation: 21 Oct 2003
Date of revision:
Handle: RePEc:hhs:iuiwop:0602
Contact details of provider: Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
Fax: +46 8 665 4599
Web page: http://www.ifn.se/
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  1. Verdier, Thierry & Zenou, Yves, 2000. "Racial Beliefs, Location And The Causes Of Crime," CEPR Discussion Papers 2455, C.E.P.R. Discussion Papers.
  2. Moro, Andrea & Norman, Peter, 2004. "A general equilibrium model of statistical discrimination," Journal of Economic Theory, Elsevier, vol. 114(1), pages 1-30, January.
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  4. 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.
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  8. George J. Mailath & Larry Samuelson & Avner Shaked, . ""Endogenous Inequality in Integrated Labor Markets with Two-sided Search''," CARESS Working Papres 98-06, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
  9. Zenou, Yves, 2003. "The Spatial Aspects of Crime," CEPR Discussion Papers 4028, C.E.P.R. Discussion Papers.
  10. Moro, Andrea & Norman, Peter, 2003. "Affirmative action in a competitive economy," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 567-594, March.
  11. Summers, Lawrence H. & Dickens, William T. & Katz, Lawrence F. & Lang, Kevin, 1989. "Employee Crime and the Monitoring Puzzle," Scholarly Articles 3645199, Harvard University Department of Economics.
  12. Rasmusen, E., 1992. "Stigma and Self-Fulfilling Expectations of Criminality," Papers 92-019, Indiana - Center for Econometric Model Research.
  13. Jeff Grogger, 1997. "Market Wages and Youth Crime," NBER Working Papers 5983, National Bureau of Economic Research, Inc.
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  19. 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.
  20. 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.
  21. Coate, S. & Loury, G.C., 1992. "Will Affirmative Action Policies Eliminate Negative Stereotypes?," Papers 3, Boston University - Department of Economics.
  22. 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.
  23. Piketty, Thomas, 1998. "Self-fulfilling beliefs about social status," Journal of Public Economics, Elsevier, vol. 70(1), pages 115-132, October.
  24. Jens Ludwig & Greg J. Duncan & Paul Hirschfield, 2001. "Urban Poverty And Juvenile Crime: Evidence From A Randomized Housing-Mobility Experiment," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 655-679, May.
  25. 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.
  26. Scott South & Kyle Crowder, 1997. "Residential mobility between cities and suburbs: race, suburbanization, and back-to-the-city moves," Demography, Springer, vol. 34(4), pages 525-538, November.
  27. 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.
  28. Freeman, Scott & Grogger, Jeffrey & Sonstelie, Jon, 1996. "The Spatial Concentration of Crime," Journal of Urban Economics, Elsevier, vol. 40(2), pages 216-231, September.
  29. 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.
  30. 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.
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