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Unemployment and Crime: New Answers to an Old Question

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Author Info
Papps, Kerry () (Cornell University)
Winkelmann, Rainer () (Department of Economics, University of Canterbury)

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Abstract

This paper uses panel data techniques to examine the relationship between unemployment and a range of categories of crime in New Zealand. The data cover sixteen regions over the period 1984 to 1996. Random and fixed effects models are used to investigate the possibility of a causal relationship between unemployment and crime. Hypothesis tests show that the inclusion of random region effects and fixed time effects produces the most efficient model. The main finding of the paper is that unemployment cannot explain changes in the overall crime rate, although significant effects on crime are found for some subcategories of crime.

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File URL: ftp://repec.iza.org/RePEc/Discussionpaper/dp25.pdf
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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 25.

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Length: 25 pages
Date of creation: Nov 1998
Date of revision:
Handle: RePEc:iza:izadps:dp25

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Related research
Keywords: regional panel data; fixed effects; clearance rate;

Find related papers by JEL classification:
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

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References listed on IDEAS
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.:
  1. Grogger, Jeffrey, 1995. "The Effect of Arrests on the Employment and Earnings of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 110(1), pages 51-71, February. [Downloadable!] (restricted)
  2. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-65, May-June. [Downloadable!] (restricted)
  3. Meyers, Samuel L, Jr, 1983. "Estimating the Economic Model of Crime: Employment versus Punishment Effects," The Quarterly Journal of Economics, MIT Press, vol. 98(1), pages 157-66, February.
  4. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November. [Downloadable!] (restricted)
  5. Tauchen, Helen & Witte, Ann Dryden & Griesinger, Harriet, 1994. "Criminal Deterrence: Revisiting the Issue with a Birth Cohort," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 399-412, August. [Downloadable!] (restricted)
  6. Stigler, George J, 1970. "The Optimum Enforcement of Laws," Journal of Political Economy, University of Chicago Press, vol. 78(3), pages 526-36, May-June. [Downloadable!] (restricted)
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  7. Entorf, Horst & Spengler, Hannes, 1998. "Socio-economic and demographic factors of crime in Germany : evidence from panel data of the German states," ZEW Discussion Papers 98-16, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  8. Baltagi, Badi H. & Boozer, Michael A., 1997. "Econometric Analysis of Panel Data," Econometric Theory, Cambridge University Press, vol. 13(05), pages 747-754, October. [Downloadable!]
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Cited by:
(explanations, 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.)

  1. Daniel Y. Lee & Stephen J. Holoviak, 2006. "Unemployment and crime: an empirical investigation," Applied Economics Letters, Taylor and Francis Journals, vol. 13(12), pages 805-810, October. [Downloadable!] (restricted)
  2. Raphael, Steven & Winter-Ebmer, Rudolf, 1999. "Identifying the Effect of Unemployment on Crime," CEPR Discussion Papers 2129, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  3. Edmark, Karin, 2003. "The Effects of Unemployment on Property Crime: Evidence from a Period of Unusually Large Swings in the Business Cycle," Working Paper Series 2003:14, Uppsala University, Department of Economics. [Downloadable!]
  4. Denis Fougère & Francis Kramarz & Julien Pouget, 2006. "Youth Unemployment and Crime in France," IZA Discussion Papers 2009, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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