Work

Crime and Poverty: a Search‐theoretic Approach*

Year: 2004

Type: article

Abstract: Numerous studies document that criminal activity is positively related to unemployment and negatively related to educational attainment levels within given communities. We study this phenomenon in the context of a search‐equilibrium model, in which agents choose between formal employment and pursuing crime‐related activities (theft). Prior to their “occupational choices,” agents undertake costly schooling, raising their productivity. Crime acts, in essence, as a tax on human capital by affecting the probability that a worker's earnings (possessions) are subsequently appropriated. There are multiple equilibria. High crime, low levels of educational attainment, long spells of unemployment, and poverty are correlated across them.

Source: International Economic Review

DOI: 10.1111/j.0020-6598.2004.00291.x

Authors: Chien‐Chieh Huang, Derek Laing, Ping Wang

Institutions: Pennsylvania State University, National Bureau of Economic Research, Soochow University, Vanderbilt University

Language: English

Topic: Crime Patterns and Interventions

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, No poverty, Decent work and economic growth

Open Access status: green

OpenAlex ID: W2115950028

FWCI: 35.32

Cites: 45

Cited by: 124

Related to: 10