Labor Market Condition and Crime: Evidence from a City Panel Data
Read
DownLoad |
| Title | Labor Market Condition and Crime: Evidence from a City Panel Data
|
| Author | Chen Chunliang and Liu Zhengshan |
| Organization | |
| Email | |
| Key Words | Labor Market Condition; Crime Rate; Two-way Fixed Effect Model |
| Abstract | Climbing crime rates in Chinese transitional period had nevertheless attracted more and more attention from researchers. This paper investigates the impact of deteriorating labor market condition on crimes. Based on a new panel data covering 22 cities from 2000 to 2008, our estimates show that one percent increase in urban industry wage gap will lead to a rise in crime rates by 0.167% on average. And further calculation indicates that about 26% and 40% respectively of more crime rates in sample big city over small cities could be explained by higher potential gains and less probability of detection related to big cities. Direct policy implication of current study is that policies and programs aiming at improving the competitive advantage of floating workers in urban labor market, in particular those involving skill training projects, would greatly help promote social order and governance in big cities, and further intensify the benefits of agglomeration. |
| Serial Number | WP718 |
| Time | 2014-09-30 |
|