Unemployment insurance generosity and crime

Hamid NoghaniBehambari and Bitran Maden

Applied Economics Letters, 2021, vol. 28, issue 13, 1076-1081

Abstract: Previous studies show that unemployment has a positive effect on crime rates; however, unemployment insurance (UI) benefits could mitigate these effects. Using county-level unemployment and crime data and taking advantage of the UI law changes across states and over time (1990–2016), we provide new evidence that the UI benefits act as a buffer against local labour market shocks. A one-standard-deviation increase in benefits is associated with 2.4% and 1.9% lower property and violent crime rates for a county at average unemployment.

Date: 2021
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DOI: 10.1080/13504851.2020.1798337

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