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dc.contributor.authorFella, Giulioen_US
dc.contributor.authorGallipoli, Giovannien_US
dc.date.accessioned2012-02-09T14:07:37Z-
dc.date.available2012-02-09T14:07:37Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/55205-
dc.description.abstractIn this paper we ask whether policies targeting a reduction in crime rates through changes in education outcomes can be considered an effective and cost-viable alternative to interventions based on harsher punishment alone. In particular we study the effect of subsidizing high school completion. Most econometric studies of the impact of crime policies ignore equilibrium effects and are often reduced-form. This paper provides a framework within which to study the equilibrium impact of alternative policies. We develop an overlapping generation, life-cycle model with endogenous education and crime choices. Education and crime depend on different dimensions of heterogeneity, which takes the form of differences in innate ability and wealth at birth as well as employment shocks. PSID, NIPA and CPS data are used to estimate the parameters of a production function with different types of human capital and to approximate a distribution of permanent heterogeneity. These estimates are used to pin down some of the model's parameters. The model is calibrated to match education enrolments, aggregate (property) crime rate and some features of the wealth distribution. In our numerical experiments we find that policies targeting crime reduction through increases in high school graduation rates are more cost-effective than simple incapacitation policies. Furthermore, the cost-effectiveness of high school subsidies increases significantly if they are targeted at the wealth poor. We also find that financial incentives to high school graduation have radically different implications in general and partial equilibrium (i.e. the scale of the programmes can substantially change its outcomes).en_US
dc.language.isoengen_US
dc.publisherQueen Mary, Univ. of London, School of Economics and Finance Londonen_US
dc.relation.ispartofseriesWorking Paper // School of Economics and Finance, Queen Mary, University of London 630en_US
dc.subject.jelH52en_US
dc.subject.ddc330en_US
dc.subject.keywordcrimeen_US
dc.subject.keywordeducationen_US
dc.subject.keywordsubsidiesen_US
dc.subject.stwKriminalitäten_US
dc.subject.stwKriminalpolitiken_US
dc.subject.stwBildungswesenen_US
dc.subject.stwÖffentliche Bildungsausgabenen_US
dc.subject.stwLebensverlaufen_US
dc.subject.stwOverlapping Generationsen_US
dc.subject.stwUSAen_US
dc.titleEducation and crime over the life cycleen_US
dc.typeWorking Paperen_US
dc.identifier.ppn574523715en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
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