Unemployment and Gang Crime: Could Prosperity Backfire?
Empirical evidence reveals that unemployment tends to increase property crime but that it has no effect on violent crime. To explain these facts, we examine a model of criminal gangs and suggest that there is a substitution effect between property crime and violent crime at work. In the model, non-monetary valuation of gang membership is private knowledge. Thus the leaders face a trade-off between less crime per member in large gangs and more crime per member in small gangs. Unemployment increases the relative attractiveness of large and less violent gangs engaging more in property crime.
|Date of creation:||Mar 2007|
|Date of revision:|
|Publication status:||published as 'Unemployment and gang crime: can prosperity backfire?' in: Economics of Governance, 2011, 12 (3), 259 - 273|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stergios Skaperdas, 2001. "The political economy of organized crime: providing protection when the state does not," Economics of Governance, Springer, vol. 2(3), pages 173-202, November.
- Raphael, Steven & Winter-Ember, Rudolf, 2001.
"Identifying the Effect of Unemployment on Crime,"
Journal of Law and Economics,
University of Chicago Press, vol. 44(1), pages 259-83, April.
- Raphael, Steven & Winter-Ebmer, Rudolf, 1999. "Identifying the Effect of Unemployment on Crime," CEPR Discussion Papers 2129, C.E.P.R. Discussion Papers.
- Raphael, Steven & WINTER-EBMER, RUDOLF, 1998. "Identifying the Effect of Unemployment on Crime," University of California at San Diego, Economics Working Paper Series qt5hb4h56g, Department of Economics, UC San Diego.
- Steven D. Levitt & Sudhir Alladi Venkatesh, 2000.
"An Economic Analysis Of A Drug-Selling Gang'S Finances,"
The Quarterly Journal of Economics,
MIT Press, vol. 115(3), pages 755-789, August.
- Steven D. Levitt & Sudhir Alladi Venkatesh, 1998. "An Economic Analysis of a Drug-Selling Gang's Finances," NBER Working Papers 6592, National Bureau of Economic Research, Inc.
- Abdala Mansour & Nicolas Marceau & Steeve Mongrain, 2006.
"Gangs and Crime Deterrence,"
Journal of Law, Economics and Organization,
Oxford University Press, vol. 22(2), pages 315-339, October.
- Konrad, Kai A. & Skaperdas, Stergios, 1997. "Credible threats in extortion," Journal of Economic Behavior & Organization, Elsevier, vol. 33(1), pages 23-39, May.
- Steven D. Levitt, 2004. "Understanding Why Crime Fell in the 1990s: Four Factors that Explain the Decline and Six that Do Not," Journal of Economic Perspectives, American Economic Association, vol. 18(1), pages 163-190, Winter.
- George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp2710. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.