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Crime Scars: Recessions and the Making of Career Criminals

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  • Machin, Stephen
  • Bindler, Anna

Abstract

Recessions lead to short-term job loss, lower levels of happiness and decreasing income levels. There is growing evidence that workers who first join the labour market during economic downturns suffer from poor job matches that have a sustained detrimental effect on their wages and career progression. This paper uses a range of US and UK data to document a more disturbing long-run effect of recessions: young people who leave school in the midst of recessions are significantly more likely to lead a life of crime than those entering a buoyant labour market. Thus crime scars from higher entry level unemployment rates are both long lasting and substantial.

Suggested Citation

  • Machin, Stephen & Bindler, Anna, 2015. "Crime Scars: Recessions and the Making of Career Criminals," CEPR Discussion Papers 10415, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:10415
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    More about this item

    Keywords

    Crime; Recessions; Unemployment;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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