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The Effect of Workfare on Crime: Incapacitation and Program Effects

Author

Listed:
  • Fallesen, Peter

    (Rockwool Foundation Research Unit)

  • Geerdsen, Lars Pico

    (Kraks Fond)

  • Imai, Susumu

    (University of Technology, Sydney)

  • Tranæs, Torben

    (VIVE - The Danish Centre for Applied Social Science)

Abstract

In this paper, we estimate the effect of workfare policy on crime by exploiting two exogenous welfare policy changes in Denmark. Our results show a strong decline in the crime rate among treated unemployment uninsured men relative to untreated uninsured and unemployment insured men, and part of this decline can be identified as a direct effect of workfare participation. Moreover, we find that criminal activity was also reduced during weekends, when the workfare programs were closed, allowing us to distinguishing the pure program effect from the incapacitation effect. These results imply a strong and potentially lasting crime reducing effect of workfare policy.

Suggested Citation

  • Fallesen, Peter & Geerdsen, Lars Pico & Imai, Susumu & Tranæs, Torben, 2014. "The Effect of Workfare on Crime: Incapacitation and Program Effects," IZA Discussion Papers 8716, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8716
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    Cited by:

    1. Rudolph, Maximilian & Starke, Peter, 2020. "How does the welfare state reduce crime? The effect of program characteristics and decommodification across 18 OECD-countries," Journal of Criminal Justice, Elsevier, vol. 68(C).
    2. Bernt Bratsberg & Øystein Hernæs & Simen Markussen & Oddbjørn Raaum & Knut Røed, 2019. "Welfare Activation and Youth Crime," The Review of Economics and Statistics, MIT Press, vol. 101(4), pages 561-574, October.
    3. repec:iza:izawol:journl:y:2015:p:185 is not listed on IDEAS
    4. Wildeman, Christopher & Fallesen, Peter, 2017. "The effect of lowering welfare payment ceilings on children's risk of out-of-home placement," Children and Youth Services Review, Elsevier, vol. 72(C), pages 82-90.
    5. Torben Tranaes, 2015. "Active labor market policies and crime," IZA World of Labor, Institute of Labor Economics (IZA), pages 185-185, September.
    6. Satadru Das & Naci Mocan, 2020. "Analyzing The Impact Of The World'S Largest Public Works Project On Crime," Economic Inquiry, Western Economic Association International, vol. 58(3), pages 1167-1182, July.

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    More about this item

    Keywords

    crime reduction; difference-in-differences; policy experiment; secondary effects; workfare policy; workfare and crime; unemployment and crime;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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