An On-the-Job Search Model of Crime, Inequality, and Unemployment

35 Pages Posted: 1 Dec 2003

See all articles by Ken Burdett

Ken Burdett

University of Pennsylvania - Department of Economics

Ricardo Lagos

New York University (NYU) - Department of Economics

Randall Wright

University of Wisconsin - Madison - Department of Finance, Investment and Banking; Federal Reserve Banks - Federal Reserve Bank of Minneapolis

Multiple version iconThere are 2 versions of this paper

Date Written: September 4, 2003

Abstract

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

Burdett, Ken and Lagos, Ricardo and Wright, Randall D., An On-the-Job Search Model of Crime, Inequality, and Unemployment (September 4, 2003). PIER Working Paper No. 03-030. Available at SSRN: https://ssrn.com/abstract=470925 or http://dx.doi.org/10.2139/ssrn.470925

Ken Burdett

University of Pennsylvania - Department of Economics ( email )

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Ricardo Lagos

New York University (NYU) - Department of Economics ( email )

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Randall D. Wright (Contact Author)

University of Wisconsin - Madison - Department of Finance, Investment and Banking ( email )

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Madison, WI 53706
United States
608-263-3860 (Phone)

Federal Reserve Banks - Federal Reserve Bank of Minneapolis

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Minneapolis, MN 55480
United States

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