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The deteriorating labour market conditions and crime: An analysis of Indian states during 2001-2008

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  • Abraham, Vinoj

Abstract

: Incidence of crime in India has been mounting at a fast pace , especially during the last decade. Moreover, crime on body seems to be increasing in comparison to crime on property. Economics and Sociology literature on crime attributes labour market as a transmitting institution for crime. This paper is an attempt to understand the issue of crime in India as a socio-economic problem with particular reference to the Indian labour market. I argue that the poor labour market conditions in the Indian economy that has been developing in the recent past may be a prime factor in explaining the spate of rise in crime rates recently. Panel data analysis of Indian states during the period 2001-2008 show that unemployment and wage inequality are key variables that explains the crime rate in India, especially crime on body. Education similarly seems to reduce property crime rate. Crime also seem to be deterred by an efficient judicial delivery system, however the role of police as a deterrent is ambiguous.

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  • Abraham, Vinoj, 2011. "The deteriorating labour market conditions and crime: An analysis of Indian states during 2001-2008," MPRA Paper 31387, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:31387
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    More about this item

    Keywords

    Crime; wages; unemployment; India;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy

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