Labor Markets, Poverty and Crime

Hiroya Kawashima
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Hiroya Kawashima: Osaka School of International Public Policy, Osaka University

No 12J007, OSIPP Discussion Paper from Osaka School of International Public Policy, Osaka University

Abstract: This paper empirically analyzes the impact of labor market conditions and poverty on crime using the prefectural panel data for each five years from 1980 to 2000. When estimating these relations, it is often the case that endogeneity causes biased estimator. Therefore panel data and Instrumental Variable method are used to consider endogeneity. The results indicate that labor market conditions do not have significant impact on crime rate; however, increase in poverty rate leads to higher crime rate.

Keywords: crime; labor markets; poverty; police; empirical analysis (search for similar items in EconPapers)
Pages: 19 pages
Date: 2012-06
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