Why Higher Pay Leads to More Crime

Kerry L. Papps ()
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Kerry L. Papps: University of Bradford

No 17989, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The effects on criminal behaviour of raising the minimum wage for those aged 25 and over in the United Kingdom are analysed, using data on police stop and search activities. A 1% increase in the minimum wage raises the fraction of people stopped by the police by 2.96%, the fraction of people caught with an incriminating item by 1.43%, and the fraction of people arrested as a consequence by 1.27%. This effect is almost entirely driven by drug searches made outside business hours, suggesting that the minimum wage raises crime principally by raising disposable income – and drug consumption – among workers.

Keywords: stop and search; crime; minimum wage (search for similar items in EconPapers)
JEL-codes: J22 J31 K42 (search for similar items in EconPapers)
Date: 2025-07
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