Workplace Deviance and Recession

35 Pages Posted: 20 Nov 2012

See all articles by Aniruddha Bagchi

Aniruddha Bagchi

Kennesaw State University- Michael J. Coles College of Business

Siddhartha Bandyopadhyay

University of Birmingham - Department of Economics

Date Written: November 20, 2012

Abstract

We examine the relationship between the incidence of workplace deviance (on-the-job crime) and the state of the economy. A worker's probability of future employment depends on whether she has been deviant as well as on the availability of jobs. Using a two period model we show that the net impact on deviant behavior to changes in unemployment can go either way depending upon the nature of the equilibrium. Two kinds of equilibria are possible. In one, a non-deviant's probability of being employed increases as expected market conditions improve which lowers the incentive to be a deviant. In contrast, in the other kind of equilibrium, the deviant's probability of being employed increases when market conditions improve which increases the incentive to be a deviant. In either case, there is a setup cost to deviant behavior and the attractiveness of incurring that increases with an increase in expected probability of future employment which unambiguously increases the incentive to be deviant. In the first kind of equilibrium, the two effects counteract each other, while in the second they reinforce each other. Finally, we show that an increase in optimism, i.e. a reduction in the probability of facing a recession unambiguously increases deviant behavior.

Keywords: crime, recession, dynamic deterrence

JEL Classification: D84, E32, J63, K42

Suggested Citation

Bagchi, Aniruddha and Bandyopadhyay, Siddhartha, Workplace Deviance and Recession (November 20, 2012). Available at SSRN: https://ssrn.com/abstract=2178719 or http://dx.doi.org/10.2139/ssrn.2178719

Aniruddha Bagchi (Contact Author)

Kennesaw State University- Michael J. Coles College of Business ( email )

United States

Siddhartha Bandyopadhyay

University of Birmingham - Department of Economics ( email )

Economics Department
Birmingham, B15 2TT
United Kingdom

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
72
Abstract Views
723
Rank
585,331
PlumX Metrics