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Author: Unel, Bulent
Resulting in 2 citations.
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Mocan, Naci Unel, Bulent |
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Skill-biased Technological Change, Earnings of Unskilled Workers, and Crime Working Paper No. 17605, National Bureau of Economic Research (NBER), November 2011 Cohort(s): NLSY97 Publisher: National Bureau of Economic Research (NBER) Keyword(s): Crime; Current Population Survey (CPS) / CPS-Fertility Supplement; Earnings; Skilled Workers; State-Level Data/Policy; Technology/Technological Changes; Wages This paper investigates the impact of unskilled workers' earnings on crime. Following the literature on wage inequality and skill-biased technological change, we employ CPS data to create state-year as well as state-year-and (broad) industry specific measures of skill-biased technological change, which are then used as instruments for unskilled workers' earnings in crime regressions. Regressions that employ state panels reveal that technology-induced variations in unskilled workers' earnings impact property crime with an elasticity of -1, but that wages have no impact on violent crime. The paper also estimates, for the first time in this literature, structural crime equations using micro panel data from NLSY97 and instrumenting real wages of young workers. Using state-year-industry specific technology shocks as instruments yields elasticities that are in the neighborhood of -2 for most types of crime, which is markedly larger than previous estimates. In both data sets there is evidence for asymmetric impact of unskilled workers' earnings on crime. A decline in earnings has a larger effect on crime in comparison to an increase in earnings by the same absolute value. |
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Bibliography Citation
Mocan, Naci and Bulent Unel. "Skill-biased Technological Change, Earnings of Unskilled Workers, and Crime." Working Paper No. 17605, National Bureau of Economic Research (NBER), November 2011. |
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Mocan, Naci Unel, Bulent |
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Skill-Biased Technological Change, Earnings of Unskilled Workers, and Crime Review of Law and Economics 13, 3 (2017): DOI: 10.1515/rle-2016-0017. Also: https://www.degruyter.com/document/doi/10.1515/rle-2016-0017/html Cohort(s): NLSY97 Publisher: Walter de Gruyter GmbH & Co. KG Keyword(s): Crime; Earnings; Geocoded Data; Skills; Technology/Technological Changes; Workers Ability Permission to reprint the abstract has not been received from the publisher. 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. |
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Bibliography Citation
Mocan, Naci and Bulent Unel. "Skill-Biased Technological Change, Earnings of Unskilled Workers, and Crime." Review of Law and Economics 13, 3 (2017): DOI: 10.1515/rle-2016-0017.
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