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Author: Fone, Zachary S.
Resulting in 2 citations.
1. Fone, Zachary S.
Essays in Applied Microeconomics: Policy Interventions and Spillovers to Crime
Ph.D. Dissertation, Department of Economics, University of New Hampshire, 2020
Cohort(s): NLSY97
Publisher: ProQuest Dissertations & Theses (PQDT)
Keyword(s): Crime; Minimum Wage

Permission to reprint the abstract has not been received from the publisher.

The first essay explores the spillover effects to crime from minimum wage increases. A report (from April 2016) by the Council of Economic Advisers advocates raising the minimum wage to deter crime. Minimum wage increases could reduce crime for low-skilled workers through wage gains, but they could also increase crime if they create adverse employment effects (less hours of work and unemployment). Using crime data across three sources over the 1998–2016 period, we find no evidence that increases in the minimum wage reduce crime. Instead, we find that raising the minimum wage increases property crime arrests among those ages 16-to-24. Our estimates suggest that a $15 Federal minimum wage could generate criminal externality costs of nearly $2.4 billion.
Bibliography Citation
Fone, Zachary S. Essays in Applied Microeconomics: Policy Interventions and Spillovers to Crime. Ph.D. Dissertation, Department of Economics, University of New Hampshire, 2020.
2. Fone, Zachary S.
Sabia, Joseph J.
Cesur, Resul
Do Minimum Wage Increases Reduce Crime?
NBER Working Paper No. 25647, National Bureau of Economic Research, March 2019.
Also: https://www.nber.org/papers/w25647
Cohort(s): NLSY97
Publisher: National Bureau of Economic Research (NBER)
Keyword(s): Arrests; Crime; Minimum Wage

An April 2016 Council of Economic Advisers (CEA) report advocated raising the minimum wage to deter crime. This recommendation rests on the assumption that minimum wage hikes increase the returns to legitimate labor market work while generating minimal adverse employment effects. This study comprehensively assesses the impact of minimum wages on crime using data from the 1998-2016 Uniform Crime Reports (UCR), National Incident-Based Reporting System (NIBRS), and National Longitudinal Study of Youth (NLSY). Our results provide no evidence that minimum wage increases reduce crime. Instead, we find that raising the minimum wage increases property crime arrests among those ages 16-to-24, with an estimated elasticity of 0.2. This result is strongest in counties with over 100,000 residents and persists when we use longitudinal data to isolate workers for whom minimum wages bind. Our estimates suggest that a $15 Federal minimum wage could generate criminal externality costs of nearly $2.4 billion.
Bibliography Citation
Fone, Zachary S., Joseph J. Sabia and Resul Cesur. "Do Minimum Wage Increases Reduce Crime?" NBER Working Paper No. 25647, National Bureau of Economic Research, March 2019.