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Social and Behavioral Sciences Commons™
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Full-Text Articles in Social and Behavioral Sciences
The Minimum Wage And Crime, Andrew Beauchamp, Stacy Chan
The Minimum Wage And Crime, Andrew Beauchamp, Stacy Chan
Economics Faculty Publications
Does crime respond to changes in the minimum wage? A growing body of empirical evidence indicates that increases in the minimum wage have a displacement effect on low-skilled workers. Economic reasoning provides the possibility that disemployment may cause youth to substitute from legal work to crime. However, there is also the countervailing effect of a higher wage raising the opportunity cost of crime for those who remain employed. We use the National Longitudinal Survey of Youth 1997 cohort to measure the effect of increases in the minimum wage on self-reported criminal activity and examine employment–crime substitution. Exploiting changes in state …
Spillover Effects Of Crimes In Neighboring States Of Mexico, Mingming Pan, Benjamin Widner, Carl E. Enomoto
Spillover Effects Of Crimes In Neighboring States Of Mexico, Mingming Pan, Benjamin Widner, Carl E. Enomoto
Economics Faculty Publications
The recent surge in crime and drug-related violence in Mexico has had a profound effect on the Mexican economy. Thousands of businesses have closed in Ciudad Juarez, a city that borders the U.S., due to the violence that has erupted between drug cartels. It has been estimated by Rios (2007) that $4.3 billion of losses occur yearly to Mexico, due to illegal drug activity in the country. Using a spatial model, this paper analyzes the determinants of crime in Mexican states. It was found that high levels of total crime and drug-related violence in neighboring states of Mexico have spillover …