Lee mobility-based explanation of crime incentives published in Korean Economic Review
Jun 30, 2012
Mobility-Based Explanation of Crime Incentives
Yoonseok Lee & Donggyun Shin
The Korean Economic Review, June 2012
The canonical economic model of crime is extended to include individuals’ expectation of
future income mobility as an additional crime determinant. The model predicts that with
all else being held constant including net gain from current criminal activity, reduced
upward mobility among the poor increases crime rate whereas enhanced downward
immobility among the rich decreases crime rate. These predictions are empirically supported
by country-level panel data. In addition, a typical change in income distribution was
implemented, such that both the poor and the rich groups contribute to crime rate with a
greater contribution among the poor.
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