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The effect of active labor market policies on crime: Incapacitation and program effects

Peter Fallesen, Lars Geerdsen, Susumu Imai and Torben Tranaes ()

Labour Economics, 2018, vol. 52, issue C, 263-286

Abstract: We estimate the effects of active labor market policies on men’s crime. To do this, we exploit a local policy change in Denmark that targeted unemployed people without unemployment insurance. Our results show that crime rates decreased among treated men relative to both untreated unemployment insured and uninsured men. Lower property crime accounted for the decrease in overall crime. Increased earnings from higher employment rates cannot explain the decrease in crime. Instead, participation in the active labor market program reduced young men’s propensity to commit crime. The results suggest that active labor market programs have substantial secondary effects on criminality.

Keywords: Active labor market programs; Crime reduction; Difference-in-differences; Policy experiment; Secondary effects (search for similar items in EconPapers)
JEL-codes: I38 K42 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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DOI: 10.1016/j.labeco.2018.03.002

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