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Austerity, welfare cuts and hate crime: Evidence from the UK's age of austerity

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  • Bray, Kerry
  • Braakmann, Nils
  • Wildman, John

Abstract

From 2010 the UK entered an ‘age of austerity’, with major cuts to welfare payments. We study the link between these cuts and increases in hate crimes. Using a panel of 313 Community Safety Partnerships areas in England and Wales, we show that for each £100 loss per working age adult, racially or religiously motivated crimes rose by approximately 5-6% in 2013/14 and 2014/15. These effects are large given a mean loss of £450 per working age adult and survive multiple robustness checks. Using individual data, we find no evidence that these crimes are driven by increased anger of the benefit recipients per se but find evidence for a decline in community cohesion.

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  • Bray, Kerry & Braakmann, Nils & Wildman, John, 2024. "Austerity, welfare cuts and hate crime: Evidence from the UK's age of austerity," Journal of Urban Economics, Elsevier, vol. 141(C).
    • Handle: RePEc:eee:juecon:v:141:y:2024:i:c:s009411902200016x
    DOI: 10.1016/j.jue.2022.103439
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    More about this item

    Keywords

    Austerity; Hate crime; Welfare cuts;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • 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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