Do Better Wages Reduce Crime?

American Journal of Economics and Sociology, Vol. 43, No. 2 (April 1984), pp. 191-195

6 Pages Posted: 4 Oct 2013

See all articles by Samuel Myers

Samuel Myers

University of Minnesota - Twin Cities - Hubert H. Humphrey Institute of Public Affairs

Abstract

Recent research has called into question theoretical and empirical findings demonstrating a deterrent effect of punishment. Also challenged has been the view that improved employment opportunities help to reduce participation in illegitimate activities. This research note summarizes newly published econometric findings revealing that better wages and employment indeed do appear to reduce individual recidivism rates, at least in the major data set studied. The data are drawn from the Baltimore LIFE experiment. Maximum likelihood methods are used to estimate the probability of recidivism one year after release from prison and the probability of avoiding rearrest or "survival" each month after release from prison. It is found that higher average weekly wages are associated with lower recidivism and higher survival rates. In contrast, no evidence is found to confirm a deterrent effect of punishment. [Complete documentation is published in S. L. Myers, Jr. "Estimating the Economic Model of Crime: Employment vs. Punishment Effects," Quarterly Journal of Economics, Vol. 95, February 1983, pp. 157-66.]

Keywords: wages, crime, economy, economics

Suggested Citation

Myers, Samuel, Do Better Wages Reduce Crime?. American Journal of Economics and Sociology, Vol. 43, No. 2 (April 1984), pp. 191-195, Available at SSRN: https://ssrn.com/abstract=2335078

Samuel Myers (Contact Author)

University of Minnesota - Twin Cities - Hubert H. Humphrey Institute of Public Affairs ( email )

301 19th Ave S
Minneapolis, MN 55455
United States

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