Unemployment insurance generosity and crime


Previous studies show that unemployment has a positive effect on crime rates; however, unemployment insurance (UI) benefits could mitigate these effects. Using county-level unemployment and crime data and taking advantage of the UI law changes across states and over time (1990-2016), we provide new evidence that the UI benefits act as a buffer against local labor market shocks. A one-standard-deviation increase in benefits is associated with 2.4% and 1.9% lower property and violent crime rates for a county at average unemployment.

Applied Economics Letters (2020)
Bitaran Jang Maden
Bitaran Jang Maden
Visiting Assistant Professor

My research interests include monetary economics, time series econometrics and applied macro economics matter.