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Crime and Economic Incentives

Machin, S.; Meghir, C.; (2000) Crime and Economic Incentives. (IFS Working Papers W00/17). Institute for Fiscal Studies: London, UK. Green open access

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We explore the role that economic incentives, particularly changes in wages at the bottom end of the wage distribution, play in determining crime rates. We use data on the police force areas of England and Wales between 1975 and 1996. We find that falls in the wages of unskilled workers leads to increases in crime. We carry out a number of experiments with different wage measures, including a wage measure that accounts for the effects of changes in the composition of employment. These reinforce the picture of a strong impact of wages on crime. The result that incentives play a central role is reinforced further by the strong impact on crime of deterrence measures and of a measure of the returns to crime.

Type: Working / discussion paper
Title: Crime and Economic Incentives
Open access status: An open access version is available from UCL Discovery
Publisher version: http://dx.doi.org/10.1920/wp.ifs.2000.0017
Language: English
Keywords: Crime, wages
UCL classification: UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/3918
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