Johnny Ch LOK
Published: 2021-05
Total Pages: 41
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⦁What are the real factors cause the changes in the crime rates?Impact of Unemployment on Crimethe unemployment rate is one of the most widely referenced economic indicators. In discussions of potential impacts of the economy on crime rates, many scholars and policy makers use the unemployment rate as a proxy for economic strength. Congress has shown interest in the relationship between the economy--unemployment, in particular--and crime rates since the 1970s. The most recent recession, which was accompanied by a rise in the unemployment rate, once again focused attention on the relationship between unemployment and crime rates.Researchers and scholars have several theories concerning the relationship betweenunemployment and crime. One of these theories, the economic theory of crime, assumes that people make rational choices between legitimate activities and criminal activities as a source of economic gain. More specifically, the comparison is between the economic benefit of legitimate work versus that of violent or property crime, after accounting for crime-related costs such as incarceration. Although the theory was originally formulated with an application to all crimes, many researchers have used it in discussions of unemployment and property crime. This theory predicts a positive correlation between unemployment and property crime; in other words, that increases in the unemployment rate will be correlated with increases in property crime rates. The reason for this positive correlation, according to the economic model, is that during periods when there are fewer opportunities for legitimate income, people may turn to illegal activities, while when more jobs are available, the risks of committing a crime may be weighed against the opportunity for legitimate work.Were a direct link between unemployment and the property crime rate, varying one wouldnecessarily vary the other? The lack of conclusive evidence for a strong, or even significant,correlation between the two suggests that the unemployment rate may have an indirect relationship with the property crime rate. Although unemployment is correlated with overall economic conditions, it may not fully capture other key economic indicators such as work hours, employment stability, and wages. Some researchers, for example, have found that employment stability and wages may correlate more strongly with the property crime rate than does unemployment.