Alban Asllani, Eleftherios Goulas, Socrates Karidis
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引用次数: 0
Abstract
This study examines how the impact of economic conditions on criminal activity is mitigated by the presence of labour market policies and that of a sizeable shadow economy. The analysis reveals a positive relationship between economic downturns and property crime, supporting the well-documented idea that economic hardships intensify criminal activity. Most importantly, however, we find that the relationship is mitigated when active labour market policies, as well as labour training, are employed by enhancing skills and productivity, thus lowering incentives for criminal behaviour. Passive policies, on the other hand, also weaken the link, primarily through the income effect, with their effectiveness being increased in the presence of high levels of the shadow economy. High levels of both kinds of labour market policies and of the shadow economy significantly reduce crime, though additional investment in those shows different returns. These findings suggest that a comprehensive approach is required when effective crime reduction is considered during economic downturns, accounting for both formal and informal sector dynamics.
期刊介绍:
KYKLOS views economics as a social science and as such favours contributions dealing with issues relevant to contemporary society, as well as economic policy applications. Since its inception nearly 60 years ago, KYKLOS has earned a worldwide reputation for publishing a broad range of articles from international scholars on real world issues. KYKLOS encourages unorthodox, original approaches to topical economic and social issues with a multinational application, and promises to give fresh insights into topics of worldwide interest