An On-the-Job Search Model of Crime, Inequality, and Unemployment
35 Pages Posted: 1 Dec 2003
Date Written: September 4, 2003
We extend simple search-theoretic models of crime, unemployment and inequality to incorporate on-the-job search. This is valuable because, although the simple models can be used to illustrate some important points concerning the economics of crime, on-the-job search models are more relevant empirically as well as more interesting in terms of the types of equilibria they generate. We characterize crime decisions, unemployment, and the equilibrium wage distribution. We use quantitative methods to illustrate key results, including a multiplicity of equilibria with different unemployment and crime rates, and to discuss the effects of changes in labor market and anti-crime policies.
JEL Classification: D83, J31
Suggested Citation: Suggested Citation