Crime responses to labour market shocks
This paper examines the effects of two significant shocks on the US labor market: trade competition and technological advancements, particularly the routinization of tasks, which have driven changes in unemployment and inequality. Using Shift-Share (Bartik) Instrumental Variables, the analysis reveals that while trade competition does not significantly impact arrest rates, technological adoption and task routinization have a notable positive effect, particularly on violent crimes and gambling. The findings show that adult men, the group most affected by routinization, experience the highest increase in arrest rates, highlighting the role of inequality as a key mechanism linking labor market disruptions to crime. These results underscore the broader societal consequences of technological change and suggest that policies addressing income inequality and worker protection are critical for mitigating these effects. This research offers valuable insights for policymakers designing equitable responses to labor market disruptions caused by technological advancements.
Presented at:
- Conference - Swiss Society of Economics and Statistics Conference (2024)
- Conference - Scottish Economic Society Conference (2024)
- Conference - Scottish Graduate Program in Economics Conference (2024)