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Title:Unemployment and gang crime: could prosperity backfire? PDF Logo
Authors:Poutvaara, Panu
Priks, Mikael
Issue Date:2007
Series/Report no.:CESifo working paper 1944
Abstract: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.
Subjects:violence
crime
gangs
unemployment
identity
JEL:K42
D71
D74
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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