Tougher Than the Rest? Relationship between Unemployment and Crime in Croatia

Vedran Recher

No 1602, Working Papers from The Institute of Economics, Zagreb

Abstract: In this paper, the relationship between unemployment and crime is analysed. A panel of 20 Croatian counties over the years 1998-2013 is used to estimate the effect of unemployment on the rates of various groups of property and violent crimes. According to the theory of economics of crime, increase in unemployment leads to higher crime rates. A fixed-effects model, including time- and county-specific effects and several covariates, is estimated. The results show there is no impact of unemployment on aggregate property crimes. For all violent crimes bar rapes, the results oppose the theory and intuition. The unexpected results are discussed in the context of the Croatian-specific macro-environment.

Keywords: crime; unemployment; fixed-effects model; panel data (search for similar items in EconPapers)
JEL-codes: J00 J69 K42 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2016-04
New Economics Papers: this item is included in nep-ger and nep-law
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Persistent link: https://EconPapers.repec.org/RePEc:iez:wpaper:1602

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