Articles

Articles

Mobility-Based Explanation of Crime Incentives
  • Author
    Yoonseok Lee (University of Michigan) and Donggyun Shin (Kyung Hee University)
  • Year
    2012
  • Volume
    Vol.28
  • Number
    No.1
  • 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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