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The Effects of Labor Markets and Income Inequality on Crime: Evidence from Panel Data

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  • Joanne M. Doyle
  • Ehsan Ahmed
  • Robert N. Horn

Abstract

We estimate a model of crime using panel data for the U.S. We focus on the role of labor markets, income distribution, and demographics on property crime. We find strong evidence that favorable labor market conditions have a significant negative effect on property crime. We further test this result using sector‐specific wages and find that crime is most elastic with respect to wages in sectors that use low‐skilled labor. We also find that income inequality has no significant effect on crime and that the proportion of young males in the population has a significant positive effect on crime.

Suggested Citation

  • Joanne M. Doyle & Ehsan Ahmed & Robert N. Horn, 1999. "The Effects of Labor Markets and Income Inequality on Crime: Evidence from Panel Data," Southern Economic Journal, John Wiley & Sons, vol. 65(4), pages 717-738, April.
    • Handle: RePEc:wly:soecon:v:65:y:1999:i:4:p:717-738
    DOI: 10.1002/j.2325-8012.1999.tb00196.x
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    References listed on IDEAS

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    Cited by:

    1. Pazzona, Matteo, 2024. "Revisiting the Income Inequality-Crime Puzzle," World Development, Elsevier, vol. 176(C).
    2. Goh, Lim Thye & Law, Siong Hook, 2023. "The crime rate of five Latin American countries: Does income inequality matter?," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 745-763.
    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.
    4. Karin Edmark, 2005. "Unemployment and Crime: Is There a Connection?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(2), pages 353-373, June.

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