Researchers have extensively explored the impact of wages on individuals’ decisions to engage in property crimes. While most of these studies in the past have relied on macro-level data to investigate the relationship between crime rates and hourly wages, this paper takes a novel approach by utilizing micro-level data to examine the influence of hourly wages on the likelihood of stealing an item valued at least $50. The results obtained from the estimations reveal that an increase in hourly wage leads to a decrease in the probability of theft, all other factors being held constant. Further estimation by gender revealed that hourly wages given to both male and female have no bearing on the decision to steal. Additionally, the analysis of the differences in theft probabilities across gender and race demonstrates that males consistently exhibit a higher likelihood of engaging in theft when compared to females across various racial groups.
References
[1]
Chan, Y.-S. (2012) A Structural Analysis of Crime and Economic Incentives of Youth. Diss., The Graduate School, Stony Brook University, Stony Brook, NY.
[2]
Becker, G.S. (1968) Crime and Punishment: An Economic Approach. In: Fielding, N.G., Clarke, A. and Witt, R., Eds., The Economic Dimensions of Crime, Palgrave Macmillan, UK, 13-68. https://doi.org/10.1007/978-1-349-62853-7_2
[3]
Ehrlich, I. (1973) Participation in Illegitimate Activities: A Theoretical and Empirical Investigation. Journal of Political Economy, 18, 521-565. https://doi.org/10.1086/260058
[4]
Becker, G.S. (1967) Human Capital and the Personal Distribution of Income: An Analytical Approach. Institute of Public Administration, New York.
[5]
Lochner, L. (2004) Education, Work, and Crime: A Human Capital Approach. International Economic Review, 45, 811-843. https://doi.org/10.1111/j.0020-6598.2004.00288.x
[6]
Beauchamp, A. and Stacey, C. (2014) The Minimum Wage and Crime. The BE Journal of Economic Analysis & Policy, 14, 1213-1235. https://doi.org/10.1515/bejeap-2013-0130
[7]
Stephen, and Meghir, C. (2004) Crime and Economic Incentives. Journal of Human Resources, 39, 958-979. https://doi.org/10.3368/jhr.XXXIX.4.958
[8]
Gould, E.D., Weinberg, B.A. and Mustard, D.B. (2002) Crime Rates and Local Labor Market Opportunities in the United States: 1979-1997. Review of Economics and Statistics, 84, 45-61. https://doi.org/10.1162/003465302317331919
[9]
Raphael, S. and Winter-Ebmer, R. (2001) Identifying the Effect of Unemployment on Crime. The Journal of Law and Economics, 44, 259-283. https://doi.org/10.1086/320275
[10]
Yamada, T. and Kang J.M. (1993) Crime Rate and Labor Market Conditions: Theory and Time-Series Evidence. The Economic Studies Quarterly, 44, 250-262.
[11]
Devine, J.A., Sheley, J.F. and Smith, M.D. (1988) Macroeconomic and Social-Control Policy Influences on Crime Rate Changes, 1948-1985. American Sociological Review, 53, 407-420. https://doi.org/10.2307/2095648
[12]
Freeman, R.B. (1994) Crime and the Labor Market. In: Wilson, J.Q. and Petersilia, J., Eds., Crime, Institute for Contemporary Studies, San Francisco, 383-420.
[13]
(2002) Logistic Regression Analysis and Reporting. The Journal of Educational Research, 96, 3-14. https://doi.org/10.1080/00220670209598786
