Criminality and Income Inequality in Indonesia

Lilik Sugiharti, Miguel Angel Esquivias, Mohd Shahidan Shaari, Lussi Agustin and Hilda Rohmawati
Additional contact information
Lilik Sugiharti: Faculty of Economics and Business, Airlangga University, Surabaya 60286, Indonesia
Mohd Shahidan Shaari: Faculty of Economics and Business, Airlangga University, Surabaya 60286, Indonesia
Lussi Agustin: Faculty of Economics and Business, Airlangga University, Surabaya 60286, Indonesia
Hilda Rohmawati: Faculty of Economics and Business, Airlangga University, Surabaya 60286, Indonesia

Social Sciences, 2022, vol. 11, issue 3, 1-19

Abstract: We investigate whether a nexus exists between income inequality and criminal activity in Indonesia. Additionally, we examine socioeconomic variables and potential links with criminal actions (i.e., crime rate, murder, rape, physical abuse, robbery, and fraud). We use the generalized method of moments (GMM) approach, employing data for 34 provinces in Indonesia over the period of 2010–2019. The results indicate that income inequality is associated with higher criminal activity. Overall, lower unemployment, larger investment (foreign and domestic), and higher human development (education and health) can help reduce crime in Indonesia. However, higher income can reduce physical abuse and crime rates, but theft and fraud increase with income growth. Rising unemployment increases rape, abuse, robbery, and fraud. Still, unemployment does not affect murder, suggesting that non-economic factors are dominant in explaining murder and violent crimes. Furthermore, income inequality can increase robbery and fraud, although it has no significant effects on murder, rape, and abuse. Government spending on social assistance and more efficient settlement of criminal acts can lower crime rates.

Keywords: crime rate; well-being; income inequality; quality education; human development; life expectancy (search for similar items in EconPapers)
JEL-codes: A B N P Y80 Z00 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2076-0760/11/3/142/pdf (application/pdf)
https://www.mdpi.com/2076-0760/11/3/142/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jscscx:v:11:y:2022:i:3:p:142-:d:776270

Access Statistics for this article

Social Sciences is currently edited by Ms. Yvonne Chu

More articles in Social Sciences from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().