The Effects of Unemployment and income on Crime: a Panel Data Analysis on Turkey (original) (raw)

INCOME, UNEMPLOYMENT AND CRİME İN TURKEY: AN ANALYSİS OF CAUSALİTY ( Türkiye’de Gelir, İşsizlik ve Suç Olgusu: Bir Nedensellik Analizi )

Economics and Applied Informatics, 2018

In this study, the relationship unemployment, GDP per capita and crime in Turkey in the years between 1985 and 2015 is analyzed econometrically and the relationship between these indicators is examined. Unit root test analysis, cointegration analysis and Granger causality model analysis are conducted in the study. In the result of the analysis, it is come into conclusion that there is a long-run relationship between the variables, and there is the two-way causality relationship between crime and GDP per capita and between crime and unemployment. but it is inferred that there is no causality relationship between GDP Per Capita and Unemployment.

UNEMPLOYMENT AND CRIME NEXUS IN EUROPEAN UNION COUNTRIES: A PANEL DATA ANALYSIS 1 AVRUPA BİRLİĞİ ÜLKELERİNDE İŞSİZLİK VE SUÇ İLİŞKİSİ: BİR PANEL VERİ ANALİZİ Öz

Yönetim Bilimleri Dergisi, 2019

Unemployment is crucial and a chronical problem for many economies due to its social and economic cost dimensions. The problem of unemployment, which causes economies to produce below their potential may also lead to several social problems. In this study, whether unemployment affects crime rates is examined for the first time for 28 countries in the European Union (EU-28) countries with the data of 1993-2016. Second-generation panel cointegration and causality tests were applied to analyze the relationship between unemployment and crime rates, and reciprocal dependence between countries. The cointegration relationship was examined by Westerlund cointegration test and causality relationship was evaluated by panel Granger causality test. Findings of Westerlund cointegration test show that there is a long-term relationship between unemployment and crime rates. At the same time, panel Granger causality test results revealed that the causality relationship is from unemployment to crime rates. The results obtained by panel dynamic least squares method, model coefficients confirm that an increase in unemployment rates positively affect crime rates. According to the results, measures to combat unemployment reduction in EU-28 countries may also lead to a decrease in crime rates.

Different categories of crime and their socio-economic determinants in Turkey: Evidence from Vector Error Correction Model

Turkish Economic Association, International …, 2006

The empirical studies on the relationship between crime and economic variables pioneered by have yielded different conclusions. This paper examines the interactions among different categories of crime, a deterrent variable and other socio-economic variables for Turkey in a temporal Granger-causal framework through a multivariate cointegrated analysis. The empirical investigation is applied to for four subcategories of crime defined by Turkish Criminal Law: crime against state or government administration, crime against public, crime against individual and crime against property. The model consists of four independent variables: percent of offences solved, per-capita GDP, rates of divorce and higher education. Results for 1967-2004 tend to suggest no cointegrating relationship for crime against individual. However, independent variables and other three types of crime (against property, against public and against state and government administration) are bound together by long-run equilibrium relationships.

Crime and Relationship between Homicide Rate and Some Socio Economic Factors: specially combination of education and unemployment In the Context of some European Countries

2021

This paper focused on to find the impact of some randomly selected socio economic factors on homicide rate in some developed countries in Europe. In our study we consider 22 European Countries during 2004-15 which lies higher Human development index. Here we are using panel data with fixed effect model. We try to relate percentage of crime or homicide rate and six socio economic factors likes of urbanization, inflation, income inequality (gini index), unemployment rate with basic education and advance education and GDP per capita. But main objective of this paper is to find combine effect of unemployment and education on homicide rate ,which is used as a proxy unemployment rate with basic education and advance education in statistical analysis part keywords Crime, GDP, Homicide Rate, Unemployment, Gini index, Education _____________________________________________________________________________________________________ 1: Introduction Words crime came from Latin word and meaning ‘to...

Socioeconomic Determinants of Economic Crimes in Turkey: Dynamic Panel Data Analysis

Yönetim ve Ekonomi Araştırmaları Dergisi

Individuals or criminal organizations carry out various criminal activities in all countries of the world with illegal methods to gain unfair economic benefits. With theft, bribery, and fraud being in the lead, many types of economic crimes disrupt the economic and social order of the society, damage mutual trust between individuals, and feed the informal economy. This study aims to determine the relationship between economic crimes and socioeconomic factors. Within the scope of the study, panel data of 26 sub-regions in the Statistical Regional Units Classification-II (İİBS-II) of Turkey for the period of 2008-2019 were analyzed with dynamic panel data methods and the socioeconomic determinants of 10 different crimes representing economic crimes in the literature were put forward. Based on the results of the study, it is observed that the gross national product per capita, unemployment, educational status, population density, and net migration, which are among the socioeconomic fac...

The relationship between property crime and social-economic indicators in Turkey

AFRICAN JOURNAL OF BUSINESS MANAGEMENT, 2012

After Gary Becker's very crucial contribution to the discussion about the correlation between crime and the economy, this subject has gained world-wide popularity and a very extensive literature has been accumulated. In Turkey however, little research have been done on this subject. In this study, the relationship between crime against property and real minimum wage, unemployment, subsistence index, and per capita income level is analyzed for the period of 1971 to 2005 with annual data of Turkey. By using the co-integration methodology test, it is determined that there is long-run relationship among the variables. This study also investigates the causality relationship among the variables using the Granger causality test and impulse-response functions are included. The empirical findings indicate that there is a causality relationship between the real minimum wage and property crime.

Unemployment and Crime Nexus in European Union Countries: A Panel Data Analysis

2019

Issizlik, sosyal ve ekonomik maliyet boyutlarindan dolayi bircok ekonomi icin hayati ve kronik bir sorundur. Ekonomilerin potansiyel uretim seviyelerinin altinda uretim yapmasina neden olan issizlik sorunu, bir takim sosyal sorunlara da yol acabilmektedir. Bu calismada issizligin suc oranlarini etkileyip etkilemedigi arastirilmistir. Issizligin AB-28'deki suc oranlarina etkisi 1993-2016 donemi icin incelenmis ve veri seti Dunya Bankasi ve Eurostat kaynaklarindan elde edilmistir. Issizlik ve suc arasindaki iliskiyi inceleyen cok sayida calisma var. Ancak, bu calisma ile hem gelismis hem de gelismekte olan ulkelerden olusan AB-28'de bu iliskinin analiz edilmesinin, tum ekonomiler icin issizlik ve suc oranlari arasindaki iliski hakkinda genel bilgi saglayacagi degerlendirilmektedir. Ek olarak, calismanin cagdas yontem ve veri setleri ile gerceklestirilmis olmasi, konuyla ilgili guncel analiz bulgulari saglamaktadir. Bu calismada, issizlik ve suc oranlari ile ulkeler arasindaki ...

Is crime cointegrated with income and unemployment?: A panel data analysis on selected European countries

2008

This paper examines the causality between income, unemployment and crime in 11 European countries employing the panel data analysis for the period 1993-2001 for both aggregated (total crime) and disaggregated (subcategories) crime data. Fixed and random effect models are estimated to analyze the impact of income and unemployment on total crime and various disaggregated categories of criminal activities. Hypothesis tests show that random effect model should be used for all (namely total crime, motor vehicle crime, domestic burglary, and violent crime) except for drug trafficking. Our results indicate that both income and unemployment have meaningful relationship with both aggregated and disaggregated crime. Crime exhibits positive significant relationship with income for all the categories except for domestic burglary, whereby it is significantly negative relationship. Crime also shows positive significant relationship with unemployment except for violent crime, whereby it is significantly negative relationship. The results also show strong country specific effect in determining the crime level.

Is Crime in Turkey Economically Rational?

SSRN Electronic Journal, 2014

The study investigates whether crime in Turkey is governed by economic rationality. An economic model of rational behaviour claims that the propensity to commit criminal activities is negatively related to risk of deterrence. Potential presence of higher risk profiles for certain population segments is investigated. Panel data aggregated to sub-regional levels and observed annually for the years 2008 to 2010 are applied. Controls for endogeneity among criminal activity level and risk of deterrence, intra-regional correlation, inter-temporal heterogeneity and spatial spillover are exerted. A positive effect of risk of deterrence on criminal activity is found which conflicts with the hypothesised economic rationality. Certain population segments are identified as obvious target groups for regional policy initiatives aiming to reduce criminal activities. These are in particular unemployed and males. On the other hand, educational attainment, poverty and youngsters are less obvious target groups, while the potential relationship between population density and crime is ambiguous. Finally, spatial spillover patters related to criminal activities seem to be highly relevant, thus implying that while initiatives toward criminal activities may well be formed at the regional level, coordination across regions might obviously be called for.