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Immigration and crime in frictional labor markets.
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- Author(s): Zhang, Shiyun1 (AUTHOR)
- Source:
Review of Economic Dynamics. Apr2022, Vol. 44, p152-183. 32p.- Subject Terms:
- Source:
- Additional Information
- Subject Terms:
- Abstract: • Immigration affects property crime rates through labor force composition and labor market outcomes. • Theoretically, the effects of immigration on crime rates are ambiguous. • Quantitatively, higher share of skilled immigrants lowers the overall crime rate, while a rise of unskilled immigrants increases the overall crime rate in the US. This paper studies the relationship between immigration and crime by applying the Engelhardt et al. (2008) crime model. Although the relationship between immigration and crime has been widely debated, there is no theoretical explanation that can define the impact of immigration on crime. This model constructs two channels through which immigrants affect the host country's crime rate: composition (direct) channel and labor market (indirect) channel. These two channels provide explanations for the ambiguity of immigration effects on crime rates. An extension of the model with skill bias and imperfect substitution between skilled and unskilled labor has more sophisticated numerical results based on the United States (U.S.) labor market and immigration. A more generous unemployment insurance system for immigrants increases both the unemployment and crime rates. An extended period of incarceration and a deportation policy reduce crime rates but have no significant impact on labor market outcomes. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of Review of Economic Dynamics is the property of Academic Press Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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