Universal Credit and Crime

Rocco d'Este and Alex Harvey
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Alex Harvey: University of Sussex

No 13484, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We evaluate the criminogenic effects of Universal Credit (UC), a monumental welfare reform designed to radically change the social security payment system in the United Kingdom. We exploit the UC rollout across constituencies using monthly data from 2010 to 2019 for England and Wales. We find UC has caused around 45,000 burglaries, with criminogenic effects lasting until the end of the sample period and expected to grow considerably by the time UC is fully rolled out when 6.5 million more individuals will use the system. The analysis suggests the worsening of benefit recipients' financial conditions as the key mechanism.

Keywords: welfare system; benefits; universal credit; crime (search for similar items in EconPapers)
JEL-codes: K14 K42 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2020-07
New Economics Papers: this item is included in nep-law
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Citations: View citations in EconPapers (4)

Published - published as 'The Unintended Consequences of Welfare Reforms: Universal Credit, Financial Insecurity, and Crime' in: Journal of Law, Economics and Organization , 2024, 40 (1), 129 - 181

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