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Crime, Education and Peer Pressure

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  • Paolo Buonanno

    (Università degli Studi di Bergamo)

Abstract

We present a dynamic two-period model of individual behaviour with heterogeneous agents in which individuals decide how to allocate their disposable time between education, crime and work in the legal sector. Education has a twofold effect: it implies higher expected wages in the legal sector, increasing the opportunity cost of committing crime and it has a sort of "civilization" effect that makes more costly to engage in criminal activities. We model this effect by introducing a peer pressure function.

Suggested Citation

  • Paolo Buonanno, 2006. "Crime, Education and Peer Pressure," Rivista di Politica Economica, SIPI Spa, vol. 96(5), pages 89-110, September.
    • Handle: RePEc:rpo:ripoec:v:96:y:2006:i:5:p:89-110
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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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