Identifying the Effect of Unemployment on Crime

  title={Identifying the Effect of Unemployment on Crime},
  author={Steven Raphael},
Previous estimates of the effect of unemployment on crime commonly omit determinants of criminal behavior that vary with the business cycle, creating correlation between unemployment rates and the residuals in aggregate crime regressions. In this paper, we employ several strategies that attempt to minimize or break this correlation and eliminate the accompanying omitted variables bias to estimates of the effect of unemployment on crime. Using a state-level panel for the period from 1970 to 1993… CONTINUE READING


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