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A Research Report On Relationship between crime and unemploymentMASTER IN ECONOMICS (2014-2015) Submitted To:- Submitted By :- Miss.Anbreen Asim ishaq 3 rd Semester, Dept. of Economics University Of Haripur DEPARTMENT OF ECONOMICS

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Page 1: Crime and unemployment

A

Research Report

On

“Relationship between crime and unemployment”

MASTER IN ECONOMICS

(2014-2015)

Submitted To:- Submitted By :-

Miss.Anbreen Asim ishaq

3rd

Semester,

Dept. of Economics

University Of Haripur

DEPARTMENT OF ECONOMICS

Page 2: Crime and unemployment

Table of content

Table of content ............................................................................................. 2

Introduction: .................................................................................................. 3

Literature review: .......................................................................................... 5

Brief analysis ................................................................................................. 7

Definition of crime ................................................................................................................... 7

Definition of Unemployment ................................................................................................... 7

The Relationship between Crime and Unemployment: ................................... 8

Descriptive analysis ..................................................................................... 10

PAKISTAN STATUS IN THE WORLD OF CRIME ........................................................................ 10

Table 1 ............................................................................................................................. 10

CRIME SCENARIO IN PAKISTAN .................................................................... 11

Table 2 ............................................................................................................................. 12

CRIME SCENE IN PAKISTAN WITH TYPES ....................................................... 14

Table 3 ............................................................................................................................. 14

CONCLUSIONS .............................................................................................. 15

References: .................................................................................................. 16

Page 3: Crime and unemployment

Introduction:

Crime is a major social concern. Every country whether developed or developing wants to

keep the criminal activities under strict observation with the help of law enforcement

authorities by root out the actual causes of these illegal activities. Many studies have been

conducted in this regard in different social and economic fields to find the causes of crime. If

we talk about the effect of economic conditions on crime then economy and crimes are linked

with each other. Decreasing economic incentives automatically increase the incentives of

illegitimate (criminal) activities for individuals (Machin, 1998). Economic and crime relation

was first elaborated by Becker in 1968. Becker’s paper since the beginning of 80’s opens the

door to a new field of empirical research whose main purpose was to verify and study the

economic variables that determine criminal choices and behaviors of individual. According to

Becker criminal acts result from a rational decision based on a cost benefit analysis. Becker

argued that a criminal should be viewed, not as a helpless victim of social oppression, but a

rational economic agent.

Different model has been developed to check the relationship of economic variables like

poverty, inflation, unemployment with increasing crime (Machin, 1998). Labor market and

crimes are linked. Unemployment increases the incentives for criminal activities as low

income or no income makes the cost benefit analysis easy for individuals (Fleisher, 1963).

Unemployment and crime go hand in hand (Reilly & Witt, 1992; Britt, 1997;, Elliott &

Ellingworth, 1998; Kapuscinski et al., 1998; Witt et al., 1998; Lin, 2007;, Buonanno &

Montolio, 2008; Baron, 2008). The poverty risk induced by, unemployment inclines

unemployed individuals to seek alternative strategies for, securing an income, including in

some cases, criminal activities. And while, poverty is a frequent consequence of becoming

unemployed, unemployment also, provides other motives for engaging in crime.

Unemployment generates negative, stimuli from social interactions, frees the individual from

the social control, imposed by institutions such as workplace and the moral judgment of

colleagues,, and promotes idleness. These are all mechanisms that, according to theory, may,

affect criminal behavior during unemployment, In most countries, however, the government

takes various measures intended to, reduce the negative consequences of unemployment.

Such measures are highly, likely to also affect crime among the unemployed by ameliorating

the negative, consequences of unemployment that may lead to criminal activity. One of the,

most obvious examples of such a measure is welfare benefits, which reduces the, necessity

for engaging in criminal activity as a method of maintaining an income, (Zhang, 1997; Britt,

1997; Kapuscinski et al., 1998; Lin, 2007). In addition to, providing welfare benefits,

governments often also operate other programs that, target the unemployed. Most Western

countries require unemployed to make use, of reemployment services that consist of elements

such as mandatory meetings, with caseworkers, courses on how to apply for jobs, compulsory

participation in, training courses etc. (for U.S. examples of such programs, see Plesca &

Smith,, 2007; Black et al., 2003; for European examples, see Kluve & Schmidt, 2002;, Kluve,

2006). These active labor market programs (ALMPs), fulfill the dual, purposes of helping the

unemployed to find work and of monitoring their activities, to ensure that they fulfill the

requirements for receiving welfare benefit., A number of studies analyze whether generous

welfare benefits reduce crime, among the unemployed. These studies show that benefit levels

and crime levels, are negatively correlated (e.g. at the state level), which indicates that

economic, deprivation is one important explanation for the link between unemployment and,

Page 4: Crime and unemployment

crime (Calvó-Armengol et al., 2007; Worrall, 2005; Farral, 2006; Savolainen,, 2000;

DeFronzo, 1997; Zhang, 1997; Devine et al. 1988; DeFronzo 1983, 1996)., But while theory

suggests that also ALMPs affect the link between unemployment, and crime, we still have no

evidence as to how these programs, and the intensity, with which they are applied, affect

crime among unemployed. Knowledge, concerning this issue is important, as it will help to

reveal the extent to which, institutional measures taken during unemployment affect crime,

and thereby, clarify when unemployment leads to crime. The present study addresses this

shortcoming by analyzing whether crime levels, among the unemployed vary with the

intensity of the ALMPs to which they are, exposed (i.e. I focus on crime committed during

the unemployment spell). To, investigate this question, the study exploits a social experiment

in which newly, unemployed individuals were randomly chosen to receive the standard

package of, ALMPs (the control group) or a package of similar, but intensified ALMPs,,

requiring higher levels of participation in job search and training courses, and, exposing the

unemployed to more social control (the treatment group). This type, of design allows us to

draw valid conclusions regarding the causal effect of, intensified ALMPs on the criminal

activity of unemployed persons.

Page 5: Crime and unemployment

Literature review:

Many studies have been conducted on the relationship between crime and its determinants.

The results of these, studies show that these various factors are responsible for promoting

crime in the world. Lee (2002), examines, the relationship between labour market conditions

and various crime series in three Asia-Pacific countries, Australia, Japan and South Korea.

Johansen maximum likelihood cointegration and Granger causality tests were, applied to time

series data to see the existence of longrun equilibrium or a causal link between

unemployment, and crime variables. The results of the study provide a strong support for a

long-run equilibrium relationship, between unemployment and various crime series. Coomer

Nicole (2003), undertook a study to examine the influence of macroeconomic factors on

crime. He, applied OLS regression to find out the results. In his analysis, he first included

unemployment, poverty, prison, population, high school and college education level and

income disparities as independent variables and run the, regression to get the relationship. He

then dropped the insignificant variables and rerun the regression and found, that

unemployment, inflation and poverty influence crime positively. Papps & Winkelmann

(1999), investigates, the relationship between unemployment and crime and range of

categories of crime in New Zealand with the, limitations of sixteen regions for the period of

1984-1996 by using country level and time loop data including, random and fixed effect

models. Unemployment and crime two variables are considered. Two way fixed effect,

techniques have been used, the result shows that there is a significant effect of unemployment

on crime., Raphel & Winter-Ebmer (1999), investigates the relationship between

unemployment and crime by using US, country data including time trends and state effect

and year effect. Property crime, violent crime, prison,, population, alcohol consumption, oil

cost and income are the variable which is considered. OLS and SLS, techniques have been

used. The result shows that significantly positive effect of unemployment on property, crime.

The evidence of violent crime is considerably weaker. Edmark (2003), investigates the effect

of, unemployment on crime for the period of 1988-1999 in Swedish countries by using fixed

effect including time, series and country level data. Variables are avg. Income, education,

social allowances population density, considered. Linear and quadratic time trend techniques

have been used. The result shows that unemployment has a positive and significant effect on

crime., Maria & Meloni (2004), investigate the determinants of crime by using panel data

approach for the period of, 1990-1999 in Argentina. Crime rate, probability of imprisonment,

GDP, unemployment rate, gini Coefficient,, and inequality variables are considered. Co

relational technique has been used. The result shows that the effect of, unemployment rate

and inequality rate is significantly associated with crime rate. Foon Tang (2004), investigates,

the relationship between unemployment, inflation and crime rate by using annual data for the

period of 1970-, 2006 in Malaysia. Crime rate, inflation and unemployment rate variables are

considered. Bartlett Corrected trace, test technique has been used. The result shows that there

is a positive significant effect of inflation and, unemployment rate on crime but inflation is

not positively associated with crime rate in short run. Trogdon, (2006), investigates the

relationship between unemployment and crime in sixteen states by using country level, data.

Variables are per capita income, age, population (black and white) and amount of federal

funding for, education considered. Microsoft excel was used to run separate regression

analysis. The result shows that there is, a significant effect between unemployment and

crime., Gillani, Hafeez et (2009), investigates the relationship between crime and its various

Page 6: Crime and unemployment

factors such as, unemployment, poverty and inflation by using time series data from 1975-

2007 in Pakistan. Crime,, unemployment, poverty, and inflation variables are considered.

Granger causality test technique has been used to, determine the result. The result shows that

crime has significant effect on unemployment, poverty, and inflation., Authors recommended

that major determinants of crime should address fairly to check crime rate in Pakistan.,

Altindag (2009), investigates the impact of unemployment on crime by using country level

data of European, countries. Variables are unemployment, police force, GDP, urbanization,

considered. OLS (ordinary least square), and SLS techniques have been used. The result

shows that the unemployment of male with low education is, more influential in driving the

impact of the overall unemployment rate and crime. Lee (2009), investigates the, effect of

increasing unemployment on crime rate by using criminal or a worker record of crime. The

effect, depends upon the apprehension rate. Demographic variables are considered. The result

shows that the effect of, unemployment on crime is insignificant at low apprehension rate and

significant at high apprehension rate. Foon, Tang (2009), investigates the linkage between

inflation, unemployment and crime rate in Malaysia by using, annual data from 1970 to 2006.

Inflation, unemployment and crime rate variables are considered. Bartlett, corrected test

technique have been used. The result shows that inflation and unemployment are positively

related, to the crime rate but inflation is not significant in short run. Kangoh Lee (2009),

investigates the effect of, increasing unemployment rate and crime rate, by using panel data

approach in San Diego. Variables are, unemployment rate, crime rate, apprehension, and

unemployment insurance considered. The result shows that, the effect of unemployment on

crime is negative on low apprehension rate but positive on high rate of, apprehension. The

effect depends on apprehension rate., Omotor (2012), investigates the determinants of crime

in Nigeria, by using panel data set for the period of 2002, to 2005. Per capita income, crime

rate, population density variables are considered. Ordinary least square, technique has been

used to determine the result. The result shows that there is a significant effect of per capita,

income and population density ion crime. The study shows that there is another big reason of

increasing crime is, poor performance of law enforcement agencies. Author recommended

that performance of law enforcement agencies as well as basic needs of population should

improve so that crime should be under control.

Page 7: Crime and unemployment

Brief analysis

Definition of crime In ordinary language, the term crime denotes an unlawful act punishable by a state. The term

"crime" does not, in modern criminal law, have any simple and universally accepted

definition, though statutory definitions have been provided for certain purposes. The most

popular view is that crime is a category created by law; in other words, something is a crime

if declared as such by the relevant and applicable law. One proposed definition is that a crime

or offence (or criminal offence) is an act harmful not only to some individual or individuals

but also to a community, society or the state ("a public wrong"). Such acts are forbidden and

punishable by law. The notion that acts such as murder, rape and theft are to be prohibited

exists worldwide. What precisely is a criminal offence is defined by criminal law of each

country. While many have a catalogue of crimes called the criminal code, in some common

law countries no such comprehensive statute exists.

Definition of Unemployment Unemployment , represents the number of people in the work force who want to work but do

not have a job. It is generally stated as a percentage and calculated by dividing the number of

people who are unemployed by the total work force.

The work force is made up of those people who want to work; it excludes people who are

retired, disabled, and able to work but not currently looking for a position; for instance, they

may be taking care of children or going to college.

Page 8: Crime and unemployment

The Relationship between Crime and

Unemployment: Crimes have always plagued every society in human history. The history of crime is as old as

history of mankind. The first crime was committed by Cain, the first son of Adam and Eve,

when he murdered his brother Abel out of jealousy. Crime is a major source of insecurity and

discomfort in every society. There is no doubt that crime inflicts enormous monetary and

psychological costs on society. The act of criminality gives rise to the feeling of insecurity

and fear to those who have not been a victim as well. This sense of panic of being victimized

generates negative effects on well being. Crime can be defined as a wrongdoing classified by

the state or the parliament of the country or law of the land. Each country sets out series of

acts (crime), which are prohibited, and punishes a criminal of these acts by a fine or

imprisonment or both. There is no universal and permanent definition of crime. It differs in

different times in different regions. According to Curzen, “A crime as an act or omission of

human conduct harmful to others which the state is bound to prevent. It renders the deviant

person liable to punishment as a result of proceedings initiated by the state organs assigned to

ascertain the nature, the extent and the legal consequences of that person’s wrongness” (see

Auolak,.1999).

Policies designed to increase jobs in country can have a direct, positive effect on crime rates.

A new study of crime across the world shows that crime rates rise and fall with

unemployment. But this truth is obscured by other factors. A Discussion Paper published for

the Centre for Economic Policy Research by two economists, Steven Raphael of the

University of California at San Diego and Rudolf Winter-Ebmer of the University of Linz,

finds support for the view held by most people that when men are out of a job they are more

likely to steal because the risks seem more worthwhile. The writers find a significant positive,

but also quantitatively large, impact of unemployment on several crime categories.

The prevalence of unemployment in an economy provides the unemployed persons an

impetus to commit crime for monetary gains. The crime rate is affected with labor market

conditions. For example, if unemployment rate increases, the opportunities for legal earnings

declined and crime score tend to jump up because real costs associated with crime for

unemployed labor force go down. A number of studies supported the notion that worsened

conditions in the labor market are associated with higher crime rates (see for instance, Levitt

1996; Doyle, et. al. 1999; Raphael and Winter-Ebmer 2001; Gould, et. al. 2002). For a

country where majority of the young is jobless crime may become a sport activity. According

to the theory of economics of crime, unemployment has a cost, i.e. it increases crime. In

addition high unemployment is costly as it keeps parts of the labor force out of production

and, if persistent is likely to decrease the skills and knowhow of the labor force. Crime is an

ailment to society which affects and attacks the rights of individuals. It is like a cancer

metastatic to society. It impacts the economic, social, and cultural development, both

nationally and internationally---a hard fact that we can no longer afford to ignore. The

incidence of crime has become an extremely important social and economic issue in Pakistan

and all over the world. The crimes impose enormous costs on victims, families of offenders

and society as a whole. It inflicts psychological and monetary damage to the society.

Page 9: Crime and unemployment

Crime has been one of the major problems of civilization from the beginning, and its

magnitude has increased over time. This paper explores the relationship between Crime and

unemployment. Economists traditionally use the unemployment rate as an indicator of the

amount of legitimate employment opportunities available to individuals. Therefore, a high

unemployment rate suggests that there are fewer employment opportunities available and

thus the opportunity cost of choosing crime over legitimate work is low (Becker, 1968,

Cornwell and Trumbull, 1994, Ehrlich, 1996, Myers, 1983, and Witte, 1980). However,

sociologists look at the unemployment rate as being an indicator of the “supply of suitable

victims” as well as the traditional economic perspective (Britt, 1994 and Cantor and Land,

1985). They suggest that as the unemployment rate increases there is a proportional decrease

in the supply of suitable victims because people have less to steal. This occurs because as

unemployment increases. Historically, there have been two major schools of thought

regarding the unemployment-crime, relationship, the first school focuses on the “supply of

offenders” while the second school focuses on the “supply of victims.” Economists have

traditionally focused on explaining the economic behavior of potential offenders and the way

they react to changes in economic conditions. One basic notion is that in order for an

individual to maintain a certain standard of living during a period of unemployment he/she

will become more likely to commit a criminal act. However, after being unable to fully

substantiate their hypothesis that a positive relationship should exist between unemployment

and crime a new school of thought developed. Sociologists and criminologists have recently

begun studying how unemployment affects the supply of suitable victims. Higher

unemployment rate is correlated with a wider decrease in production and consumption;

therefore there is less new merchandise in the “market” to be stolen. As Cantor and Land

(1985) note, a crime requires not just the supply of a motivated offender but also a suitable

target. Unemployment is a factor because the criminal individual is marked by the

deterioration of living standards, its emotional structure becomes unstable, the family is

affected and the person can not control their desires and in this context is influenced to

commit crimes. Crime is high during the economic crisis because people has no where to

work, the salary is low; they are being affected socially unprotected and therefore resort to

committing crimes. Profession as a criminal factor can influence the commission of offenses

related to individual specialization, a special interest in representing crime “white collar”.In

“White Collar Crime” published in 1949, Sutherland defines the crime as committed by the

individual in society and has a high social status, businessmen, politicians, senior

management etc. Analyzed legally, these offenses do not differ greatly from those committed

by other criminals, but the way the crime was committed is more refined, they benefit

because the social status of an indulgence overall, their reputation is not compromised, their

personality is determining the offense. Crime “white collar” is achieved through regulatory

gaps speculation, misinterpretation of the law. Sutherland pointed out that the usual crime

statistics present a picture of the criminal population composed of individuals belonging to

lower strata of society and economic privileges not enjoyed. This does not mean that crime in

the upper social classes do not include respected businessmen, politicians. Sutherland argued

that the most common, white-collar crime occurs through misrepresentation of the financial

situation of enterprises through stock manipulation and bribery of public figures in order to

secure profitable contracts, financial embezzlement, etc. Criminals with “white collar”

commit acts which are defined by Sutherland as a “violation of criminal law by persons with

high socio-economic status as part of their occupational class”. Education does not act

Page 10: Crime and unemployment

directly on reducing crime. In fact, the substance of other factors may increase crime being

directed to certain offenses that require the individual to be trained as fraud, tax evasion,

corruption, unfair competition, etc.

Descriptive analysis

PAKISTAN STATUS IN THE WORLD OF CRIME To start with this section, we shall have a look at the crime picture in the, world as well as in

Pakistan. Table 1 provides the total number of crime of, the world top countries along with

other selected countries including, Pakistan.

Table 1 shows that the United States, Germany and United Kingdom are, the top three

countries in absolute numbers. Pakistan’s rank is 23rd amongst, other countries whereas India

is 10th

. Daily average of crime in Pakistan is 1144 as against 64870 in USA, 17164 in

Germany, 14166 in UK and 4834 in India.

*1999 Figure, **2007 Figure,

Source: Seventh United Nations Survey of Crime Trends and Operations of, Criminal Justice Systems

(United Nations Office on Drugs and Crime,, Centre for International Crime Prevention), Bureau of Police

Research, and Development, Ministry of Interior, Islamabad.

Table 1

Total Crime By Country

Page 11: Crime and unemployment

CRIME SCENARIO IN PAKISTAN Crime Statistics of Pakistan shows that there is a rapid increase in the, number of crime

reported over time like other countries of the world. It may, be because of high

unemployment, rising poverty, increasing inflation and, urbanization. Some other non-

economic factors are also responsible for it. The impact of rising crime is not confined to the

illiterate and poor class of, society; even some wealthy, well-placed and educated persons are

also, involved in committing crime. They are in the race of accumulating wealth, through

illegal means. Furthermore, these people have sources to exploit, loopholes in the legal

system to get away with crime in Pakistan. Furthermore,, majority of the people who have

meager resources at their disposal to, meet their both ends are also involved in crime in the

country. The crime, statistics of Pakistan indicates that the country is not doing well in

economic,, social, cultural, technological, environmental, moral and spiritual fields.

Nowadays crimes have become more organized and some criminals, have gained the

patronage of powerful elites. The Government of Pakistan, had taken steps to control crime in

Pakistan in the past. For example, the, surveys were conducted to identify parts of the country

by city or areas, 84 Pakistan Economic and Social Review, where the incidence of crime was

relatively high along with their major, causes. Various steps were taken in those areas/cities

to check the crime but, unfortunately because of corruption, poor implementation of policies

and, rising terrorist attacks the circumstances were quite disappointing. Furthermore, lack of

justice and influence of powerful on judiciary also, encouraged crime in the country. The

available crime statistics show that the total crime cases registered, in 1947 at the time of

Independence were 73,105, which doubled to 129,679, in 1971. Then there is rapid increase

in crime rate particularly after 1980.The, total reported crime during the decade from 1980 to

1990 almost doubled, from 152,782 to 403,078 and the number of crime reached to 43804 in

2007. The annual growth rate of crime has generally been higher than that of, population

growth rate since 1951. These figures relate to the reported crime, only. No reliable figures

can be given about the unreported crime in the, country. However, about 30-50% crimes are

generally considered to be, unreported in Pakistan. Pakistan’s population is currently growing

at a rate of almost 2 percent, per annum. The total population at the time of Independence

was about 30, million and it is 158.17 million in 2007 (almost five times). Table 2 shows,

total population, total crime, their growth rates and crime committed per, population of

100,000 for selected years from 1951 to 2007. Table 2 shows that the number of crime per

100,000 population has, gone up from 226 to 340 during the reference period. In 1971, the

reported, crime per hundred thousand population were estimated at 206 that rose to, 323 in

1998. It shows an increase of 56.79 percent in crime. The reported, crime includes murders,

attempted murder, kidnapping for ransom, car, lifting, dacoity, rap, robbery and theft etc.

During the period from 1981 to, 1986, growth in crime rate had been over 4 percent per

annum, which, outstripped the population growth of 3 percent. This was an era of martial,

law, Afghan war, flow of Afghan refugees in the country, narcotics, trafficking, gun running,

and kidnapping for ransom. Crime population ratio given in the above-mentioned table

reveals that, in 1966, 180 offences were reported per 100,000 population. By the year, 1991,

it increased to 257 per 100,000 population, which shows an increase of, 40%. The situation

further worsened in 1998 when the reported offences, increased to 323 per 100,000 persons.

Page 12: Crime and unemployment

However, the total number of crime has shown increasing trend, yet on, the basis of crime per

100,000 population, it is less than 300 in the years, GILLANI et al.: Unemployment, Poverty,

Inflation and Crime Nexus 85, 1998-2005 but in the year 2007 the reported offences

increased to 340. Number of Crime per 100,000 population in Pakistan does not fully

indicate, the growth of the alarming increase in crime. The society, however, feels, alarmed

when the number of crime show increasing trend and hit the, headlines in the press daily and

the people start feeling concerned about their, safety and security.

Source: Pakistan Economic Survey (Various issues),

Bureau of Police Research and Development, Islamabad

Nadeem, Azhar Hassan (2002), Pakistan: The Political Economy of, Lawlessness. Karachi: Oxford

University Press.

Table 2

Population And Crime Growth In Pakistan

Page 13: Crime and unemployment

Position of United States and United Kingdom is 8th and 6th in terms of, world ranking on

the basis of crime per 100,000 population while Dominica, tops the list followed by New

Zealand, Finland and Denmark. Position of United States and United Kingdom is 8th and 6th

in terms of, world ranking on the basis of crime per 100,000 population while Dominica, tops

the list followed by New Zealand, Finland and Denmark. Contrary to, 86 Pakistan Economic

and Social Review, the general belief that Pakistan as a heaven for criminals, she is way

behind, at 57th position in the world. This situation could be partly attributed to a, large

number of unreported cases of crime, estimated at about 50% in the, west, where most of the

crime cases are reported/recorded in their criminal, records. However, even if this under

reporting is taken into account the, number of crime cases per 100,000 population will just

push up Pakistan’s, ranking by two or three positions only. India is, however, better off with,

average of 163 per 100,000 population as against 305 in Pakistan which is, 87% higher than

India.

Page 14: Crime and unemployment

CRIME SCENE IN PAKISTAN WITH TYPES In Table 3, crimes reported in Pakistan by types from 1996-2007 are presented.

The total number of reported crime has gone up by about 63 percent, during the period 1996-

2007. A rapid growth is recorded in case of dacoity, robbery and cattle theft and the lowest

one is in case of murder/attempted, murder. The nature of crime committed indicates that the

increase in crime, committed was financially motivated.,

Table 3

Crimes reported by type

Page 15: Crime and unemployment

CONCLUSIONS The results of the study reveal that the above mentioned economic factors have relationship

with crime. Therefore the study conclusions that unemployment causes crime. The reason is

that, unemployment rate in is a complementary indicator of income opportunities in the legal

labour market., Therefore, when, unemployment rate increases the opportunities for earning

income decreases which instigate, the individuals to commit crime. The costs of committing

crime go down for unemployed workers. The results of, causality support this proposition

that unemployment causes crime., The low income in relation to increase prices (inflation)

has crime instigating effect by reducing individual’s, moral threshold. This situation forces

people to boost their income for maintaining their existing living standards, by legitimate or

illegitimate means including criminal activities. In the light of the results of this study, the

following recommendations are suggested to prevent crime and reduce, crime rate.

These recommendations may help the government in formulation of policies that can be,

appropriate in curtailing the crime rate. It is therefore recommended that holistic effort should

be, made by governments at all levels to create jobs and arrest unemployment. government

instead of, employing foreigners, should sponsor her citizens abroad for studies in divert

fields of study. All the major, economic determinants of crime – unemployment, inequalities,

inflation etc. are needed to be adequately, addressed by the policy makers to check the crime

rate in the country.

Page 16: Crime and unemployment

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of the professional literature. American Journal of Economics and Sociology,

Coomer, Nicole (2003), America’s underclass and crime: The influence of macroeconomic factors. Issues in Political Economy, Volume 12.

Auolak, Majeed Ahmed (1999), Prison Administration in Pakistan. Lahore: S and S

Publishers. Becker, Gary S. (1968), Crime and punishment: An economic approach. Journal of

Political Economy, Volume 76, pp. 169-217.

Becker, Gary S. (1993), Nobel lecture: The economic way of looking at behaviour. The Journal of Political Economy, Volume 101(3), pp. 385-409.

Becker, Gary S. and Kevin M. Murphy (1988), A theory of rational addiction. The

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Becker, Gary S. and George J. Stigler (1977), De Gustibus Non Est Disputandum. The

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https://en.wikipedia.org/wiki/Crime

http://study.com/academy/lesson/what-is-unemployment-definition-causes-

effects.html

Coomer, Nicole (2003), America’s underclass and crime: The influence of macroeconomic factors. Issues in Political Economy, Volume 12.

Mathur, K. Vijay (1978), Economics of crime: An investigation of deterrent hypothesis for urban areas. The Review of Economics and Statistics, Volume 60(3), pp. 45-

466.

Nadeem, Azhar Hassan (2002), Pakistan: The Political Economy of

Lawlessness. Karachi: Oxford University Press.