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Why Higher Pay Leads to More Crime

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  • Papps, Kerry L.

    (University of Bradford)

Abstract

The effects on criminal behaviour of raising the minimum wage for those aged 25 and over in the United Kingdom are analysed, using data on police stop and search activities. A 1% increase in the minimum wage raises the fraction of people stopped by the police by 2.96%, the fraction of people caught with an incriminating item by 1.43%, and the fraction of people arrested as a consequence by 1.27%. This effect is almost entirely driven by drug searches made outside business hours, suggesting that the minimum wage raises crime principally by raising disposable income – and drug consumption – among workers.

Suggested Citation

  • Papps, Kerry L., 2025. "Why Higher Pay Leads to More Crime," IZA Discussion Papers 17989, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17989
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    References listed on IDEAS

    as
    1. Nils Braakmann, 2022. "Does stop and search reduce crime? Evidence from street‐level data and a surge in operations following a high‐profile crime," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 185(3), pages 1370-1397, July.
    2. Pierre Brochu & David A. Green, 2013. "The Impact of Minimum Wages on Labour Market Transitions," Economic Journal, Royal Economic Society, vol. 123(12), pages 1203-1235, December.
    3. Christine Braun, 2019. "Crime and the minimum wage," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 32, pages 122-152, April.
    4. Fone, Zachary S. & Sabia, Joseph J. & Cesur, Resul, 2023. "The unintended effects of minimum wage increases on crime," Journal of Public Economics, Elsevier, vol. 219(C).
    5. Kirstine Hansen & Stephen Machin, 2002. "Spatial Crime Patterns and the Introduction of the UK Minimum Wage," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(supplemen), pages 677-697, December.
    6. repec:bla:obuest:v:64:y:2002:i:s1:p:677-697 is not listed on IDEAS
    7. Arindrajit Dube & T. William Lester & Michael Reich, 2016. "Minimum Wage Shocks, Employment Flows, and Labor Market Frictions," Journal of Labor Economics, University of Chicago Press, vol. 34(3), pages 663-704.
    8. repec:bla:obuest:v:64:y:2002:i:0:p:677-97 is not listed on IDEAS
    9. Andrew Aitken & Peter Dolton & Rebecca Riley, 2019. "The Impact of the Introduction of the National Living Wage on Employment, Hours and Wages," National Institute of Economic and Social Research (NIESR) Discussion Papers 501, National Institute of Economic and Social Research.
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    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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