Unemployment and Gang Crime: Could Prosperity Backfire?
Panu Poutvaara () and
No 2710, IZA Discussion Papers from Institute of Labor Economics (IZA)
Empirical evidence reveals that unemployment tends to increase property crime but that it has no effect on violent crime. To explain these facts, we examine a model of criminal gangs and suggest that there is a substitution effect between property crime and violent crime at work. In the model, non-monetary valuation of gang membership is private knowledge. Thus the leaders face a trade-off between less crime per member in large gangs and more crime per member in small gangs. Unemployment increases the relative attractiveness of large and less violent gangs engaging more in property crime.
Keywords: unemployment; gangs; crime; violence; identity (search for similar items in EconPapers)
JEL-codes: D71 D74 K42 (search for similar items in EconPapers)
Pages: 17 pages
New Economics Papers: this item is included in nep-law and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed
Published - published as 'Unemployment and gang crime: can prosperity backfire?' in: Economics of Governance, 2011, 12 (3), 259 - 273
Downloads: (external link)
Working Paper: Unemployment and Gang Crime: Could Prosperity Backfire? (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp2710
Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Access Statistics for this paper
More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().