A Vicious Cycle of Regional Unemployment and Crime? - Evidence from German Counties

Konferenzbeitrag

Much research has been done showing that unemployment can cause crime, and that crime adversely impacts economic activity. However, very few authors have considered a simultaneous relationship. Using an IV-setup and regional panel-data, I find evidence for the possibility of a vicious cycle, with unemployment leading to higher crime rates and crime rates raising unemployment. I further find that especially employment in low-skill service jobs is adversely affected by crime, that many types of crime are impacted by unemployment differently and that both apartment rents and GDP-growth decrease if crime increases. The spatial dependencies found further raise the possibility that these vicious cycles could spill over into neighboring regions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2020: Gender Economics

Classification and Topics

• Classification: Wirtschaft ; Labor Force and Employment, Size, and Structure ; Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions ; Illegal Behavior and the Enforcement of Law ; Regional Economic Activity: Growth, Development, Environmental Issues, and Changes ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics ; Real Estate Markets, Spatial Production Analysis, and Firm Location: General
• Subject: Crime ; Unemployment ; Amenities ; spatial autregresssive model ; SARAR ; endogenous regessors.

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Umbach, Tim
• Event: Veröffentlichung
• (who): ZBW - Leibniz Information Centre for Economics
• (where): Kiel, Hamburg
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/224611
• Last update: 10.03.2025, 11:42 AM CET