Skip to main content

Advertisement

SpringerLink
Log in

Inequality and criminality revisited: further evidence from Brazil

  • Original Paper
  • Published:
Empirical Economics Aims and scope Submit manuscript

Abstract

The objective of this study is to shed light on the determinants of criminality rates in Brazil. A panel data model was estimated using Brazilian states’ data. Our main result suggests that income inequality plays an important role in the determination of the crime rate. Furthermore, there are evidence suggesting that both unemployment and urbanization rates are positively related to crime. Based on a GMM approach we find the existence of an “inertial effect” on criminality. Besides that, the GMM results show that public security spending is effective in reducing criminality rates. Contrary to the common wisdom, we could not find evidence that poverty increases violent crimes. Finally, we have evidence that income inequality Granger causes crime, but not the reverse.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Aghion P, Howitt P (1998) Endogenous Growth Theory. MIT Press, London

    Google Scholar 

  • Andrade MV, Lisboa MB (2001) Mortalidade nos Estados do Rio de Janeiro, São Paulo e Minas Gerais. Estudos Econômicos São Paulo 31(1): 5–56

    Google Scholar 

  • Arellano M, Bond S (1991) Some tests of specification for panel data: Monte Carlo evidence and an application to employent equations. Rev Econ Stud 58: 277–297

    Article  Google Scholar 

  • Arellano M, Bover O (1995) Another look at the instrumental variable estimation of error-components models. J Econom 68: 29–51

    Article  Google Scholar 

  • Baltagi BH (1995) Econometric analysis of panel data. Wiley, New York

    Google Scholar 

  • Becker GS (1968) Crime and punishment: an economic approach. J Polit Econ 101: 169–217

    Article  Google Scholar 

  • Becker GS (1975) Human capital: a theoretical and empirical analisys. Columbia University Press, New York

    Google Scholar 

  • Bénabou R (1996) Inequality and growth. NBER Macroeconomics Annual 11

  • Blundell R, Bond S (1998) Initial conditions and moment restrictions in dynamic panel data models. J Econom 87: 115–143

    Article  Google Scholar 

  • Blumstein A (1995) Touth violence, guns and the illicit-drug industry. J Crim Law and Criminol 86(4): 1175–1216

    Google Scholar 

  • Blumstein A, Rosenfeld R (1998) Explaining recent trends in US homicide rates. J Crim Law Criminol 86(1): 10–36

    Article  Google Scholar 

  • Bond S (2002) Dynamic panel data models: a guide to micro data methods and practice. Working Paper 09/02. Institute for Fiscal Studies, London

    Google Scholar 

  • Bourguinon F (1999) Crime as a social cost of poverty: a review focusing on developing countries. World Bank

  • Cano Ie, Santos N (2000) Uma Comparação das Fontes de Informação sobre Violência Letal. Mímeo. ISER

  • Card D (2001) Estimating the return to scooling: progress on some persistent econometric problems. Econometrica 69(5): 1127–1160

    Article  Google Scholar 

  • Daly M, Wilson M, Vasdev S (2001) Income inequality and homicide rates in Canada and the United States. Can J Criminol 43: 219–236

    Google Scholar 

  • Durlauf NS (2001) A framework for the study of individual behavior and social interactions. Working Paper, Department of Economics, University of Wisconsin at Madison

  • Ehrlich I (1973) Participation in illegitimate activies: a theorical and empirical investigation. J Polit Econ 81: 521–565

    Article  Google Scholar 

  • Ehrlich I (1975) Deterrent effect of capital punishment: a question of life and death. Am Econ Rev 65(3): 397–417

    Google Scholar 

  • Fajnzylber Pe, Araújo A Jr (2001) Violência e Criminalidade, em Microeconomia Aplicada no Brasil. Fundação Getúlio Vargas

  • Fajnzylber P, Lederman D, Loayza N (2000) What causes violent crime. Eur Econ Rev 46: 1323–1357

    Article  Google Scholar 

  • Fajnzylber P, Lederman D, Loayza N (1999) Inequality and violent crime. World Bank

  • Fleischer BM (1966) The effect of income on delinquency. Am Econ Rev 56: 118–137

    Google Scholar 

  • Freeman RB (1994) Crime and Job Market. NBER Working Paper 4910

  • Freeman RB (1999) The economics of crime. In: Ashenfelter O, Card D (eds) Handbook of labor economis, vol 3

  • Freeman RB, Rodgers WM III (1999) Area economic conditions and the labor market outcomes of young men in the 1990s expansion. NBER Working Paper 7073, April

  • Glaeser EL, Sacerdote B (1999) Why is there more crime in cities. J Polit Econ 107(6): S225–S258

    Article  Google Scholar 

  • Glaeser EL, Sacerdote B, Scheinkman JA (1996) Crime and social interactions. Q J Econ 111: 507–548

    Article  Google Scholar 

  • Gould ED, Weinberg BA, Mustard DB (1979–1997) Crimes rates and local market opportunities in the United States

  • Granger C (1969) Investigating causal relations by econometric model and cross-spectral methods. Econometrica 37: 424–438

    Article  Google Scholar 

  • Greene W (1993) Econometric analisis. Prentice-Hall, Englewood Cliffs

    Google Scholar 

  • Grogger J (1997) Local violence and educational attainment. J Hum Resour 32(4): 659–682

    Article  Google Scholar 

  • Hagan J, Petersen RD (1995) Crime and inequality. Stanford University Press

  • Holtz-Eakin D, Newey W, Rosen H (1988) Estimating vector autoregressions with panel data. Econometrica 56(6): 1371–1395

    Article  Google Scholar 

  • Hsiao C (2003) Analysis of panel data. Cambridge University Press, Cambridge

    Google Scholar 

  • Imai S, Krishna K (2001) Employment, dynamic deterrence and crime. NBER Working Paper 8281

  • Judge G, Hill CW, Griffiths CW, Lee T, Lutkepol H (1985) Introduction to the theory and practice of econometrics. Wiley, New York

    Google Scholar 

  • Kelly M (2000) Inequality and crime. Rev Econ Stat 82(4): 530–539

    Article  Google Scholar 

  • Kennedy B, Kawachi I, Prothrow-Stith D, Lochner K, Gupta RV (1998) Social capital, income inequality, and firearm violent crime. Soc Sci Med 47(1): 7–17

    Article  Google Scholar 

  • Levitt SD (1996) The effect of prison population size on crime rates: evidence from prison overcrowding litigation. Q J Econ 111: 320–351

    Article  Google Scholar 

  • Levitt SD, Venkatesh SA (1998) An economic analisis of drug-selling Gangs’s Finances. National Bureau of Economic Research Working Paper

  • Lochner SD (2001) A theorical and empirical study of individual perceptions of the criminal justice system. NBER Working PaperSeries

  • Loureiro PRA, Mendonça MJC, Sachsida A, Belquior T (2009) Crime, economic conditions, social interactions and family heritage. Int Rev Law Econ (forthcoming)

  • MacDonald Ziggy (2002) Official crime statistics: their use and interpretation. Econ J 112: F85–F106

    Article  Google Scholar 

  • Magalhães TA (1997) Desemprego e Crime—uma análise de séries temporais para o Distrito Federal: 1992–1996. Master Thesis, UNB, Department of Economics

  • Mendonça MJC, Loureiro PRA, Sachsida A (2002) Interaç ão Social e Crimes Violentos: uma análise empírica a partir do Presídio de Papuda. Estud Econ 32(4): 621–641

    Google Scholar 

  • Merton R (1938) Social structure and anatomie. Am Sociol Rev 3: 672–682

    Article  Google Scholar 

  • Mincer J (1958) Investment in human capital and personal income distribution. J Polit Econ 66(4): 281–302

    Article  Google Scholar 

  • Pearsson T, Tabellini G (1998) Is inequality harmful for growth? Theory and evidence. Am Econ Rev 48: 600–621

    Google Scholar 

  • Nair-Reicheit U, Weinhold D (2001) Causality tests for cross-country panels: new look at FDI and economic growth in developing countries. Oxf Bull Econ Stat 63(2): 151–171

    Google Scholar 

  • Sachsida A, Mendonça MJC, Loureiro PRA (2008) Wage discrimination and place of residence. Braz J Appl Econ 12(3)

  • Soares JB (1999) Development, crime and punishment: accounting for the international differences in crime rates. Mimeo, Department of Economics, University of Chicago

  • Trumbull WN (1989) Estimating of the economic model of crime using aggregate and individual data level. South Econ J 56: 423–439

    Article  Google Scholar 

  • Witte AD, Witt R (2001) What we spend and what we get: public and provision of crime prevention and criminal justice. NBER Working Paper No. 8204

  • Wooldridge FM (2001) Econometric analysis of cross-section and panel data. MIT Press, New York

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Institute for Applied Economic Research, Catholic University of Brasilia, Brasília, Brazil

    Adolfo Sachsida

  2. Institute for Applied Economic Research, IPEA, Rio de Janeiro, Brazil

    Mario Jorge Cardoso de Mendonça & Maria Bernadete Sarmiento Gutierrez

  3. Department of Economics, Catholic University of Brasilia, Brasília, Brazil

    Paulo R. A. Loureiro

  4. Depto de Economia, Universidade Federal Fluminense (UFF), Niterói, Brazil

    Maria Bernadete Sarmiento Gutierrez

Authors
  1. Adolfo Sachsida
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Mario Jorge Cardoso de Mendonça
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Paulo R. A. Loureiro
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Maria Bernadete Sarmiento Gutierrez
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Adolfo Sachsida.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Sachsida, A., de Mendonça, M.J.C., Loureiro, P.R.A. et al. Inequality and criminality revisited: further evidence from Brazil. Empir Econ 39, 93–109 (2010). https://doi.org/10.1007/s00181-009-0296-4

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00181-009-0296-4

Keywords

JEL Classification

Search

Navigation