Patrick Bennett, Amine Ouazad, 29 October 2016

A substantial body of literature finds significant effects of unemployment rates on crime rates. However, relatively little is known about the direct impact of individual unemployment on individual crime. This column examines the effect of job displacement on crime using 15 years of Danish administrative data. Being subject to a sudden and unexpected mass-layoff is found to increase the probability that an individual commits a crime. However, the findings stress the importance of policies targeting education and income inequality in mitigating crime.

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