Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 660: Still unemployed, what next? Crime and unemployment duration
Anna Bindler ()
Additional contact information
Anna Bindler: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden
Abstract: In this paper, I study the relationship between unemployment benefits, labour market conditions and crime in the light of increasing unemployment durations and temporary benefit extensions in the US. First, I find a positive reduced form effect of the benefit extensions on property crime. Second, I explore the mechanisms of the reduced form in an IV model and find that higher unemployment and longer unemployment durations are linked to higher property crime rates. These findings can rationalise the reduced form effect: Longer benefit durations are linked to longer unemployment durations which in turn contribute to increased propensities for criminal activity.
Keywords: Crime; unemployment; unemployment duration; unemployment insurance
41 pages, June 2016
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