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Inequality and crime in Latin America and the Caribbean: new data for an old question

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  • Schargrodsky, Ernesto
  • Freira, Lucia

Abstract

The purpose of this paper is to revisit the relationship between inequality and crime, with a focus on the Latin America and Caribbean region. We find a significant, positive, and robust association between these variables. Moreover, inequality is the only variable showing this robust regularity. Education levels, economic activity, income per capita, and poverty show weaker and unstable relationships with crime. With due caution, the use of historical variables to instrument for inequality in crime regressions suggests that a causal interpretation of this relationship is plausible. In addition, the analysis of the distribution of crime victimization indicates that men suffer more crime than women, and that the male-to-female homicide ratio grows with inequality. By socio-economic strata, high-income groups suffer more victimization relative to poorer groups in LAC countries, but the poor suffer more homicides.

Suggested Citation

  • Schargrodsky, Ernesto & Freira, Lucia, 2023. "Inequality and crime in Latin America and the Caribbean: new data for an old question," LSE Research Online Documents on Economics 120908, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:120908
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    References listed on IDEAS

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    1. Levitt, Steven D, 1997. "Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime," American Economic Review, American Economic Association, vol. 87(3), pages 270-290, June.
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    More about this item

    Keywords

    crime; inequality; poverty; Latin America and Caribbean;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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