A Poverty Trap of Crime and Unemployment

13 Pages Posted: 17 Jul 2007

See all articles by Luciano Mauro

Luciano Mauro

University of Trieste - Department of Economics and Statistics

Gaetano Carmeci

University of Trieste - Department of Economics, Business, Mathematics and Statistics (DEAMS)

Abstract

We present an overlapping generation growth model with an imperfect labor market where the links among crime, growth and unemployment are jointly considered, both in an endogenous and exogenous set-up. We test the major implications of our theory and verify the two model specifications through the Italian regional data, using the Pooled Mean Group estimator proposed by Pesaran, Shin and Smith (1999). The empirical results are in favor of the exogenous version of the model and suggest that crime and unemployment have long-run income level effects.

Suggested Citation

Mauro, Luciano and Carmeci, Gaetano, A Poverty Trap of Crime and Unemployment. Review of Development Economics, Vol. 11, No. 3, pp. 450-462, August 2007. Available at SSRN: https://ssrn.com/abstract=1000702 or http://dx.doi.org/10.1111/j.1467-9361.2006.00350.x

Luciano Mauro (Contact Author)

University of Trieste - Department of Economics and Statistics ( email )

Piazzale Europa 1
Trieste, Trieste 34100
Italy

Gaetano Carmeci

University of Trieste - Department of Economics, Business, Mathematics and Statistics (DEAMS) ( email )

Via Valerio n. 4/1
Trieste
Italy

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