EconPapers    
Economics at your fingertips  
 

Unemployment and crime: the role of apprehension

Kangoh Lee ()
Additional contact information
Kangoh Lee: San Diego State University

European Journal of Law and Economics, 2018, vol. 45, issue 1, No 3, 59-80

Abstract: Abstract An increase in the unemployment rate decreases the opportunity cost of crime and increases the crime rate according to standard microeconomics models. However, a large body of empirical research has shown that an increase in unemployment may increase or decrease crime. By incorporating the return to crime into standard economic models, this paper shows that an increase in unemployment, as in recessions, decreases the opportunity cost of crime and the return to crime as well. As a result, the effect of unemployment on crime is ambiguous and depends on the apprehension rate. An increase in the unemployment rate tends to decrease the crime rate at lower apprehension rates, but to increase it at higher apprehension rates. An increase in the generosity of unemployment insurance benefits does not necessarily reduce the crime rate, and the effect of more generous unemployment insurance on crime depends again on the apprehension rate.

Keywords: Unemployment; Crime; Apprehension (search for similar items in EconPapers)
JEL-codes: J64 K42 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10657-016-9526-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:kap:ejlwec:v:45:y:2018:i:1:d:10.1007_s10657-016-9526-3

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10657

Access Statistics for this article

European Journal of Law and Economics is currently edited by Jürgen Georg Backhaus, Giovanni B. Ramello and Alain Marciano

More articles in European Journal of Law and Economics from Springer
Series data maintained by Sonal Shukla ().

 
Page updated 2018-02-24
Handle: RePEc:kap:ejlwec:v:45:y:2018:i:1:d:10.1007_s10657-016-9526-3