Skill-Biased Technological Change, Earnings of Unskilled Workers, and Crime

Document Type

Article

Publication Date

11-27-2017

Abstract

This paper investigates the impact of unskilled workers' earnings on crime. We create indexes of skill-biased technological change which vary by state and year, or by state, year, and industry. These indexes are used as instruments for earnings in crime regressions. We analyze US state panels, and also run structural crime equations using micro panel data from NLSY97. Estimated elasticities are markedly larger than those obtained by previous studies. Considering technology being adopted at the regional level does not alter the results appreciably. We also find evidence for asymmetric impact of unskilled workers' earnings on crime.

Publication Source (Journal or Book title)

Review of Law and Economics

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