Article

Crime, Education and Peer Pressure

Department of Economics, University of Milan-Bicocca
12/2003;
Source: RePEc

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 multiple role: 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.

0 Bookmarks
 · 
339 Views
  • Source
    [Show abstract] [Hide abstract]
    ABSTRACT: This study uses panel data of intentional homicide and robbery rates for a sample of developed and developing countries for the period 1970–1994, based on information from the United Nations World Crime Surveys, to analyze the determinants of national crime rates both across countries and over time. A simple model of the incentives to commit crimes is proposed, which explicitly considers possible causes of the persistence of crime over time (criminal inertia). A panel-data based GMM methodology is used to estimate a dynamic model of national crime rates. This estimator controls for unobserved country-specific effects, the joint endogeneity of some of the explanatory variables, and the existence of some types of measurement errors afflicting the crime data. The results show that increases in income inequality raise crime rates, crime tends to be counter-cyclical, and criminal inertia is significant.
    European Economic Review 07/2002; · 1.53 Impact Factor
  • Source
    [Show abstract] [Hide abstract]
    ABSTRACT: This article analyzes a general equilibrium model in which agents choose to specialize in either legitimate or criminal activities. Expenditures on police to apprehend criminals, as well as income redistribution, are determined endogenously through majority voting. We investigate how crime, redistribution, and police expenditures depend on characteristics of the underlying distribution of income-earning abilities and on the apprehension technology. Our model accounts for the positive correlation between inequality and crime, the positive correlation between expenditures on police and redistribution, and the lack of correlation between crime and redistribution observed in U.S. data. Copyright 2000 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
    International Economic Review 02/2000; 41(1):1-25. · 1.56 Impact Factor
  • Source
    [Show abstract] [Hide abstract]
    ABSTRACT: In a model where risk-neutral agents have differing (legal) incomes which may be supplemented by burglary, we study the effects of income distribution on the level of burglary. Assuming that a detected burglar is incarcerated for a fixed term, and assuming that burglars choose target houses using the signal of house quality, we show how increases in income inequality may increase the level of crime. In particular, increases in `relative differential' inequality, unambiguously increase burglary crime. Corollaries are that a more regressive income tax increases the level of crime, and that richer neighborhoods may have lower crime rates.
    Journal of Public Economics 01/1998; 69(1). · 1.46 Impact Factor

Full-text

View
8 Downloads
Available from