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Still unemployed, what next? Crime and unemployment duration

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  • Bindler, Anna

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

In this paper, I study the relationship between unemployment benefits, labour market conditions and crime in the light of increasing unemployment durations and temporary benefit extensions in the US. First, I find a positive reduced form effect of the benefit extensions on property crime. Second, I explore the mechanisms of the reduced form in an IV model and find that higher unemployment and longer unemployment durations are linked to higher property crime rates. These findings can rationalise the reduced form effect: Longer benefit durations are linked to longer unemployment durations which in turn contribute to increased propensities for criminal activity.

Suggested Citation

  • Bindler, Anna, 2016. "Still unemployed, what next? Crime and unemployment duration," Working Papers in Economics 660, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0660
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    File URL: http://hdl.handle.net/2077/44450
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    References listed on IDEAS

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    Cited by:

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    3. d'Este, Rocco & Harvey, Alex, 2020. "Universal Credit and Crime," IZA Discussion Papers 13484, Institute of Labor Economics (IZA).
    4. Deiana, C, 2016. "Local Labour Market Effects of Unemployment on Crime Induced by Trade Shocks," Economics Discussion Papers 16529, University of Essex, Department of Economics.

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    More about this item

    Keywords

    Crime; unemployment; unemployment duration; unemployment insurance;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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