The Effect of Relative Income Differences on Crime: Evidence from Micro-data
(English)Manuscript (preprint) (Other academic)
This is the first study to examine the effect of relative income differences on criminal behavior. I use rich register data that encompass detailed information on individual convictions, labor market as well as demographic characteristics. The results show that there is a positive effect on the propensity to commit property crime. The effect is small and mainly driven by past offenders, low educated and young individuals. I only find weak evidence that relative income differences increases the likelihood to commit violent crime. The empirical analysis however reveals that differences in gross labor earnings are more strongly related to crime than disparities in disposable income.
Crime, Income Inequality, Relative Income Differences
Research subject Law and Economics
IdentifiersURN: urn:nbn:se:su:diva-72479OAI: oai:DiVA.org:su-72479DiVA: diva2:499504