Abstract

http://ssrn.com/abstract=303838
 
 

Citations



 


 



Inequality and Violent Crime


Daniel Lederman


The World Bank - International Trade Department

Pablo Fajnzylber


World Bank - Economic Development Institute; Federal University of Minas Gerais

Norman Loayza


World Bank - Research Department


Journal of Law and Economics, Vol. 45, No. 1, Part 1

Abstract:     
In this article we take an empirical cross-country perspective to investigate the robustness and causality of the link between income inequality and crime rates. First, we study the correlation between the Gini index and, respectively, homicide and robbery rates along different dimensions of the data (within and between countries). Second, we examine the inequality-crime link when other potential crime determinants are controlled for. Third, we control for the likely joint endogeneity of income inequality in order to isolate its exogenous impact on homicide and robbery rates. Fourth, we control for the measurement error in crime rates by modelling it as both unobserved country-specific effects and random noise. Lastly, we examine the robustness of the inequality crime-link to alternative measures of inequality. The sample for estimation consists of panels of non-overlapping 5-year averages for 39 countries over 1965-95 in the case of homicides, and 37 countries over 1970-1994 in the case of robberies. We use a variety of statistical techniques, from simple correlation to regression analysis and from static OLS to dynamic GMM estimation. We find that crime rates and inequality are positively correlated (within each country and, particularly, between countries), and it appears that this correlation reflects causation from inequality to crime rates, even controlling for other crime determinants.

Accepted Paper Series


Not Available For Download

Date posted: May 1, 2002  

Suggested Citation

Lederman, Daniel and Fajnzylber, Pablo and Loayza, Norman, Inequality and Violent Crime. Journal of Law and Economics, Vol. 45, No. 1, Part 1. Available at SSRN: http://ssrn.com/abstract=303838

Contact Information

Daniel Lederman (Contact Author)
The World Bank - International Trade Department ( email )
1818 H Street NW
Washington, DC 20433
United States
HOME PAGE: http://sites.google.com/site/danielledermanworldbank/
Pablo R. Fajnzylber
World Bank - Economic Development Institute ( email )
1818 H Street
Washington, DC 20433
United States
Federal University of Minas Gerais ( email )
Rua Curitiba, 832
CEDEPLAR 9 Andar
MG30170-120 Belo Horizonte
Brazil
+55 31 32799162 (Phone)
Norman Loayza
World Bank - Research Department ( email )
1818 H Street, N.W.
Washington, DC 20433
United States
Feedback to SSRN


Paper statistics
Abstract Views: 3,486

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.437 seconds