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How and Why Does Immigration Affect Crime? Evidence from Malaysia

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  • Caglar Ozden
  • Mauro Testaverde
  • Mathis Wagner

Abstract

The perception that immigration fuels crime is an important source of anti-immigrant sentiment. Using Malaysian data for 2003-10, this paper provides estimates of the overall impact of economic immigration on crime, and evidence on different socio-economic mechanisms underpinning this relationship. The IV estimates suggest that immigration decreases crime rates, with an elasticity of around −0.97 for property and -1.8 violent crimes. Three-quarters of the negative causal relationship between immigration and property crime rates can be explained by the impact of immigration on the underlying economic environment faced by natives. The reduction in violent crime rates is less readily explained by these factors.

Suggested Citation

  • Caglar Ozden & Mauro Testaverde & Mathis Wagner, 2018. "How and Why Does Immigration Affect Crime? Evidence from Malaysia," The World Bank Economic Review, World Bank, vol. 32(1), pages 183-202.
    • Handle: RePEc:oup:wbecrv:v:32:y:2018:i:1:p:183-202.
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    4. Kırdar, Murat G. & López Cruz, Ivan & Türküm, Betül, 2022. "The effect of 3.6 million refugees on crime," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 568-582.
    5. Nelly Exbrayat & Victor Stephane, 2024. "Does Urbanization Cause Crime? Evidence from Rural-Urban Migration in South Africa," Working Papers 2401, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    6. Tomohara, Akinori, 2024. "Does immigration increase crime? The advantage of dynamic threshold models with finer geographic units," International Economics, Elsevier, vol. 179(C).
    7. Huang, Yue & Kvasnicka, Michael, 2019. "Immigration and Crimes against Natives: The 2015 Refugee Crisis in Germany," IZA Discussion Papers 12469, Institute of Labor Economics (IZA).
    8. Billy, Alexander & Packard, Michael, 2022. "Crime and the Mariel Boatlift," International Review of Law and Economics, Elsevier, vol. 72(C).

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