IDEAS home Printed from https://ideas.repec.org/a/bla/germec/v13y2012i4p366-384.html
   My bibliography  Save this article

Youth Crime and Education Expansion

Author

Listed:
  • Stephen Machin
  • Olivier Marie
  • Sunčica Vujić

Abstract

We present new evidence on the causal impact of education on crime, by considering a large expansion of the UK post-compulsory education system that occurred in the late 1980s and early 1990s. The education expansion raised education levels across the whole education distribution and, in particular for our analysis, at the bottom end enabling us to develop an instrumental variable strategy to study the crime-education relationship. At the same time as the education expansion, youth crime fell, revealing a significant cross-cohort relationship between crime and education. The causal crime reducing effect of education is estimated to be negative and significant, and considerably bigger in (absolute) magnitude than ordinary least squares estimates. The education boost also significantly impacted other productivity related economic variables (qualification attainment and wages), demonstrating that the incapacitation effect of additional time spent in school is not the sole driver of the results.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Stephen Machin & Olivier Marie & Sunčica Vujić, 2012. "Youth Crime and Education Expansion," German Economic Review, Verein für Socialpolitik, vol. 13(4), pages 366-384, November.
  • Handle: RePEc:bla:germec:v:13:y:2012:i:4:p:366-384
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Weron, R & Bierbrauer, M & Trück, S, 2004. "Modeling electricity prices: jump diffusion and regime switching," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 336(1), pages 39-48.
    2. Chan, Kam Fong & Gray, Philip & van Campen, Bart, 2008. "A new approach to characterizing and forecasting electricity price volatility," International Journal of Forecasting, Elsevier, vol. 24(4), pages 728-743.
    3. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 4, number 4, June.
    4. Jo Blanden & Stephen Machin, 2013. "Educational Inequality and The Expansion of UK Higher Education," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(5), pages 578-596, November.
    5. Mount, Timothy D. & Ning, Yumei & Cai, Xiaobin, 2006. "Predicting price spikes in electricity markets using a regime-switching model with time-varying parameters," Energy Economics, Elsevier, vol. 28(1), pages 62-80, January.
    6. Stephen Machin & Olivier Marie & Sunčica Vujić, 2011. "The Crime Reducing Effect of Education," Economic Journal, Royal Economic Society, vol. 121(552), pages 463-484, May.
    7. Misiorek Adam & Trueck Stefan & Weron Rafal, 2006. "Point and Interval Forecasting of Spot Electricity Prices: Linear vs. Non-Linear Time Series Models," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 10(3), pages 1-36, September.
    8. Paul J. Devereux & Robert A. Hart, 2010. "Forced to be Rich? Returns to Compulsory Schooling in Britain," Economic Journal, Royal Economic Society, vol. 120(549), pages 1345-1364, December.
    9. Bierbrauer, Michael & Menn, Christian & Rachev, Svetlozar T. & Truck, Stefan, 2007. "Spot and derivative pricing in the EEX power market," Journal of Banking & Finance, Elsevier, vol. 31(11), pages 3462-3485, November.
    10. Steven D. Levitt & Lance Lochner, 2001. "The Determinants of Juvenile Crime," NBER Chapters, in: Risky Behavior among Youths: An Economic Analysis, pages 327-374, National Bureau of Economic Research, Inc.
    11. Haldrup, Niels & Nielsen, Frank S. & Nielsen, Morten Ørregaard, 2010. "A vector autoregressive model for electricity prices subject to long memory and regime switching," Energy Economics, Elsevier, vol. 32(5), pages 1044-1058, September.
    12. De Jong Cyriel, 2006. "The Nature of Power Spikes: A Regime-Switch Approach," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 10(3), pages 1-28, September.
    13. Lance Lochner & Enrico Moretti, 2004. "The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports," American Economic Review, American Economic Association, vol. 94(1), pages 155-189, March.
    14. Haldrup, Niels & Nielsen, Morten Orregaard, 2006. "A regime switching long memory model for electricity prices," Journal of Econometrics, Elsevier, vol. 135(1-2), pages 349-376.
    15. Lance Lochner, 2004. "Education, Work, And Crime: A Human Capital Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 811-843, August.
    16. Mocan Naci & Unel Bulent, 2017. "Skill-Biased Technological Change, Earnings of Unskilled Workers, and Crime," Review of Law & Economics, De Gruyter, vol. 13(3), pages 1-46, November.
    17. 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.
    18. Adam Misiorek & Rafal Weron, 2006. "Interval forecasting of spot electricity prices," HSC Research Reports HSC/06/05, Hugo Steinhaus Center, Wroclaw University of Technology.
    19. Eric D. Gould & Bruce A. Weinberg & David B. Mustard, 2002. "Crime Rates And Local Labor Market Opportunities In The United States: 1979-1997," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 45-61, February.
    20. Christensen, T.M. & Hurn, A.S. & Lindsay, K.A., 2012. "Forecasting spikes in electricity prices," International Journal of Forecasting, Elsevier, vol. 28(2), pages 400-411.
    21. Haldrup Niels & Nielsen Morten Ø., 2006. "Directional Congestion and Regime Switching in a Long Memory Model for Electricity Prices," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 10(3), pages 1-24, September.
    22. repec:qut:auncer:2012_5 is not listed on IDEAS
    23. Ricardo Sabates & Leon Feinstein, 2008. "Effects of government initiatives on youth crime," Oxford Economic Papers, Oxford University Press, vol. 60(3), pages 462-483, July.
    24. Brian A. Jacob & Lars Lefgren, 2003. "Are Idle Hands the Devil's Workshop? Incapacitation, Concentration, and Juvenile Crime," American Economic Review, American Economic Association, vol. 93(5), pages 1560-1577, December.
    25. Terry Robinson, 2000. "Electricity pool prices: a case study in nonlinear time-series modelling," Applied Economics, Taylor & Francis Journals, vol. 32(5), pages 527-532.
    26. Joanna Janczura & Rafał Weron, 2012. "Efficient estimation of Markov regime-switching models: An application to electricity spot prices," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 96(3), pages 385-407, July.
    27. Eichler, M. & Grothe, O. & Manner, H. & Türk, D.D.T., 2012. "Modeling spike occurrences in electricity spot prices for forecasting," Research Memorandum 029, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    28. Mirko Draca & Stephen Machin, 2015. "Crime and Economic Incentives," Annual Review of Economics, Annual Reviews, vol. 7(1), pages 389-408, August.
    29. Oreopoulos, Philip, 2007. "Do dropouts drop out too soon? Wealth, health and happiness from compulsory schooling," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2213-2229, December.
    30. Grogger, Jeff, 1998. "Market Wages and Youth Crime," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 756-791, October.
    31. Stuart Thomas & Vikash Ramiah & Heather Mitchell & Richard Heaney, 2011. "Seasonal factors and outlier effects in rate of return on electricity spot prices in Australia's National Electricity Market," Applied Economics, Taylor & Francis Journals, vol. 43(3), pages 355-369.
    32. Lance Lochner, 2010. "Non-Production Benefits of Education: Crime, Health and Good Citizenship," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20107, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    33. Devereux, Paul J. & Fan, Wen, 2011. "Earnings returns to the British education expansion," Economics of Education Review, Elsevier, vol. 30(6), pages 1153-1166.
    34. Janczura, Joanna & Weron, Rafal, 2009. "Regime-switching models for electricity spot prices: Introducing heteroskedastic base regime dynamics and shifted spike distributions," MPRA Paper 18784, University Library of Munich, Germany.
    35. Weron, Rafal & Janczura, Joanna, 2010. "Efficient estimation of Markov regime-switching models: An application to electricity wholesale market prices," MPRA Paper 26628, University Library of Munich, Germany.
    36. Huisman, Ronald & Mahieu, Ronald, 2003. "Regime jumps in electricity prices," Energy Economics, Elsevier, vol. 25(5), pages 425-434, September.
    37. Janczura, Joanna & Weron, Rafal, 2010. "An empirical comparison of alternate regime-switching models for electricity spot prices," Energy Economics, Elsevier, vol. 32(5), pages 1059-1073, September.
    38. Rafal Weron, 2006. "Modeling and Forecasting Electricity Loads and Prices: A Statistical Approach," HSC Books, Hugo Steinhaus Center, Wroclaw University of Technology, number hsbook0601, December.
    39. Trueck, Stefan & Weron, Rafal & Wolff, Rodney, 2007. "Outlier Treatment and Robust Approaches for Modeling Electricity Spot Prices," MPRA Paper 4711, University Library of Munich, Germany.
    40. B. Ricky Rambharat & Anthony E. Brockwell & Duane J. Seppi, 2005. "A threshold autoregressive model for wholesale electricity prices," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 54(2), pages 287-299, April.
    41. Kosater, Peter & Mosler, Karl, 2006. "Can Markov regime-switching models improve power-price forecasts? Evidence from German daily power prices," Applied Energy, Elsevier, vol. 83(9), pages 943-958, September.
    42. Lindström, Erik & Regland, Fredrik, 2012. "Modeling extreme dependence between European electricity markets," Energy Economics, Elsevier, vol. 34(4), pages 899-904.
    43. Jonathan Gruber, 2001. "Risky Behavior among Youths: An Economic Analysis," NBER Books, National Bureau of Economic Research, Inc, number grub01-1.
    44. Boudt, Kris & Croux, Christophe & Laurent, Sébastien, 2011. "Robust estimation of intraweek periodicity in volatility and jump detection," Journal of Empirical Finance, Elsevier, vol. 18(2), pages 353-367, March.
    45. Yanyuan Ma & Marc G. Genton, 2000. "Highly Robust Estimation of the Autocovariance Function," Journal of Time Series Analysis, Wiley Blackwell, vol. 21(6), pages 663-684, November.
    46. Hjalmarsson, Randi, 2008. "Criminal justice involvement and high school completion," Journal of Urban Economics, Elsevier, vol. 63(2), pages 613-630, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. van Ours, Jan C. & Williams, Jenny & Ward, Shannon, 2015. "Bad Behavior: Delinquency, Arrest and Early School Leaving," CEPR Discussion Papers 10755, C.E.P.R. Discussion Papers.
    2. Wang, Chuhong & Liu, Xingfei & Yan, Zizhong & Zhao, Yi, 2022. "Higher education expansion and crime: New evidence from China," China Economic Review, Elsevier, vol. 74(C).
    3. van der Steeg, Marc & van Elk, Roel & Webbink, Dinand, 2015. "Does intensive coaching reduce school dropout? Evidence from a randomized experiment," Economics of Education Review, Elsevier, vol. 48(C), pages 184-197.
    4. Nikhil Jha, 2021. "No time for crime? The effect of compulsory engagement on youth crime," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1571-1597, December.
    5. Janke, Katharina & Johnston, David W. & Propper, Carol & Shields, Michael A., 2018. "The Causal Effect of Education on Chronic Health Conditions," IZA Discussion Papers 11353, Institute of Labor Economics (IZA).
    6. Janke, Katharina & Johnston, David W. & Propper, Carol & Shields, Michael A., 2020. "The causal effect of education on chronic health conditions in the UK," Journal of Health Economics, Elsevier, vol. 70(C).
    7. Nguyen, Hieu T.M., 2019. "Do more educated neighbourhoods experience less property crime? Evidence from Indonesia," International Journal of Educational Development, Elsevier, vol. 64(C), pages 27-37.
    8. Bebonchu Atems, 2020. "Identifying the Dynamic Effects of Income Inequality on Crime," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(4), pages 751-782, August.
    9. Marc van der Steeg & Roel van Elk & Dinand Webbink, 2012. "Does intensive coaching reduce school dropout?," CPB Discussion Paper 224, CPB Netherlands Bureau for Economic Policy Analysis.
    10. repec:tir:wpaper:50 is not listed on IDEAS
    11. James, Jonathan & Vujić, Sunčica, 2019. "From high school to the high chair: Education and fertility timing," Economics of Education Review, Elsevier, vol. 69(C), pages 1-24.
    12. Gray, Daniel & Montagnoli, Alberto & Moro, Mirko, 2021. "Does education improve financial behaviors? Quasi-experimental evidence from Britain," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 481-507.
    13. Huttunen, Kristiina & Pekkarinen, Tuomas & Uusitalo, Roope & Virtanen, Hanna, 2018. "Lost Boys: Access to Secondary Education and Crime," Working Papers 114, VATT Institute for Economic Research.
    14. Nordin , Martin, 2014. "Does Eligibility for Tertiary Education Affect Crime Rates? Quasi-Experimental Evidence," Working Papers 2014:14, Lund University, Department of Economics.
    15. Roee Sarel, 2022. "Crime and punishment in times of pandemics," European Journal of Law and Economics, Springer, vol. 54(2), pages 155-186, October.
    16. Povilas Lastauskas & Eirini Tatsi, 2017. "Spatial Nexus in Crime and Unemployement in Times of Crisis," Bank of Lithuania Working Paper Series 39, Bank of Lithuania.
    17. Lindgren, Karl-Oskar & Oskarsson, Sven & Persson, Mikael, 2016. "How does access to education influence political candidacy? Lessons from school openings in Sweden," Working Paper Series 2016:7, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    18. Brugård, Kaja Høiseth & Falch, Torberg, 2013. "Post-compulsory education and imprisonment," Labour Economics, Elsevier, vol. 23(C), pages 97-106.
    19. Aoki, Yu, 2014. "More Schooling, Less Youth Crime? Learning from an Earthquake in Japan," IZA Discussion Papers 8619, Institute of Labor Economics (IZA).
    20. Liu, Xingfei & Wang, Chuhong & Yan, Zizhong & Zhao, Yi, 2022. "Higher Education Expansion and Crime: New Evidence from China," Working Papers 2022-2, University of Alberta, Department of Economics.
    21. Ignacio Munyo, 2015. "The Juvenile Crime Dilemma," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 18(2), pages 201-211, April.
    22. James, Jonathan, 2015. "Health and education expansion," Economics of Education Review, Elsevier, vol. 49(C), pages 193-215.
    23. Brutti, Zelda & Montolio, Daniel, 2021. "Preventing criminal minds: Early education access and adult offending behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 97-126.
    24. Pengfei Jia & King Yoong Lim, 2021. "The stabilization role of police spending in a neo‐Keynesian economy with credit market imperfections," Scottish Journal of Political Economy, Scottish Economic Society, vol. 68(1), pages 103-125, February.
    25. Rud, I & Van Klaveren, C. & Groot, W. and Maassen van den Brink, H., 2013. "Education and Youth Crime: a Review of the Empirical Literature," Working Papers 48, Top Institute for Evidence Based Education Research.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eichler, M. & Türk, D., 2013. "Fitting semiparametric Markov regime-switching models to electricity spot prices," Energy Economics, Elsevier, vol. 36(C), pages 614-624.
    2. Eichler, M. & Türk, D.D.T., 2012. "Fitting semiparametric Markov regime-switching models to electricity spot prices," Research Memorandum 035, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    3. Weron, Rafał, 2014. "Electricity price forecasting: A review of the state-of-the-art with a look into the future," International Journal of Forecasting, Elsevier, vol. 30(4), pages 1030-1081.
    4. Csapó, Gergely & Müller, Rudolf, 2013. "Optimal mechanism design for the private supply of a public good," Games and Economic Behavior, Elsevier, vol. 80(C), pages 229-242.
    5. Stephen Machin & Olivier Marie & Sunčica Vujić, 2011. "The Crime Reducing Effect of Education," Economic Journal, Royal Economic Society, vol. 121(552), pages 463-484, May.
    6. Janczura, Joanna & Trück, Stefan & Weron, Rafał & Wolff, Rodney C., 2013. "Identifying spikes and seasonal components in electricity spot price data: A guide to robust modeling," Energy Economics, Elsevier, vol. 38(C), pages 96-110.
    7. Joanna Janczura & Rafal Weron, 2012. "Inference for Markov-regime switching models of electricity spot prices," HSC Research Reports HSC/12/01, Hugo Steinhaus Center, Wroclaw University of Technology.
    8. Joanna Janczura, 2014. "Pricing electricity derivatives within a Markov regime-switching model: a risk premium approach," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 79(1), pages 1-30, February.
    9. Rafal Weron, 2006. "Modeling and Forecasting Electricity Loads and Prices: A Statistical Approach," HSC Books, Hugo Steinhaus Center, Wroclaw University of Technology, number hsbook0601, December.
    10. Lance Lochner, 2010. "Education Policy and Crime," NBER Chapters, in: Controlling Crime: Strategies and Tradeoffs, pages 465-515, National Bureau of Economic Research, Inc.
    11. Joanna Janczura, 2012. "Pricing electricity derivatives within a Markov regime-switching model," Papers 1203.5442, arXiv.org.
    12. Luigi Grossi & Fany Nan, 2018. "The influence of renewables on electricity price forecasting: a robust approach," Working Papers 2018/10, Institut d'Economia de Barcelona (IEB).
    13. Luigi Grossi & Fany Nan, 2017. "Forecasting electricity prices through robust nonlinear models," Working Papers 06/2017, University of Verona, Department of Economics.
    14. Lisi, Francesco & Nan, Fany, 2014. "Component estimation for electricity prices: Procedures and comparisons," Energy Economics, Elsevier, vol. 44(C), pages 143-159.
    15. Janczura, Joanna & Weron, Rafal, 2010. "An empirical comparison of alternate regime-switching models for electricity spot prices," Energy Economics, Elsevier, vol. 32(5), pages 1059-1073, September.
    16. Joanna Janczura & Rafał Weron, 2013. "Goodness-of-fit testing for the marginal distribution of regime-switching models with an application to electricity spot prices," AStA Advances in Statistical Analysis, Springer;German Statistical Society, vol. 97(3), pages 239-270, July.
    17. Grossi, Luigi & Nan, Fany, 2019. "Robust forecasting of electricity prices: Simulations, models and the impact of renewable sources," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 305-318.
    18. van Ours, Jan C. & Williams, Jenny & Ward, Shannon, 2015. "Bad Behavior: Delinquency, Arrest and Early School Leaving," CEPR Discussion Papers 10755, C.E.P.R. Discussion Papers.
    19. Nowotarski, Jakub & Tomczyk, Jakub & Weron, Rafał, 2013. "Robust estimation and forecasting of the long-term seasonal component of electricity spot prices," Energy Economics, Elsevier, vol. 39(C), pages 13-27.
    20. Andreas Gerster, 2016. "Negative price spikes at power markets: the role of energy policy," Journal of Regulatory Economics, Springer, vol. 50(3), pages 271-289, December.

    More about this item

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:germec:v:13:y:2012:i:4:p:366-384. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/vfsocea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.