Ethnicity and Spatial Externalities in Crime
Università di Roma "La Sapienza"; Institute for the Study of Labor (IZA); Einaudi Institute for Economics and Finance (EIEF)
Stockholm University; Research Institute of Industrial Economics (IUI); Institute for the Study of Labor (IZA); Centre for Economic Policy Research (CEPR)
CEPR Discussion Paper No. DP6130
We develop a model where the decision to commit a crime in a neighboring area is a positive function of the percentage of same-race individuals residing in that area since they can provide crucial information on crime possibilities. The model then predicts a positive spatial correlation in crime between different contiguous areas; this correlation is higher the closer the distance between the areas. We empirically investigate these relationships using data from the crime statistics that are recorded by the police in Britain. We find results that are consistent with the model. In particular, the agglomeration of a given ethnic minority group is positively related to its crime activity and this effect declines quite sharply with distance between areas.
Number of Pages in PDF File: 29
Keywords: Crime, ethnic minorities, social interactions
JEL Classification: C23, K42, R12working papers series
Date posted: May 19, 2008
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