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What part of the income distribution matters for explaining property crime? The case of Colombia

RISMendeley
URI: http://hdl.handle.net/1992/8302
Author: Bourguignon, François; Sánchez Torres, Fabio José; Núñez Méndez, Jairo Augusto
Publication date: 2003
Content type: document
Keywords:
Crime economics
Income distribution
Inequality
Delitos contra la propiedad - Aspectos socioeconómicos - Colombia
Pobreza - Aspectos socioeconómicos - Colombia
Colombia - Condiciones económicas
Colombia - Condiciones sociales
Abstract:
Inequality has always been taken as a major explanatory factor of the rate of crime. Yet, the evidence in favor of that hypothesis is weak. Pure cross-sectional analyses show significant positive effects but do not control for fixed effects. Time series and panel data point to a variety of results, but few turn out being significant. The hypothesis maintained in this paper is that it is a specific part of the distribution, rather than the overall distribution as summarized by conventional inequality measures, that is most likely to influence the rate of (property) crime in a given society. Using a simple theoretical model and panel data in 7 Colombian cities over a 20 year period, we design a method that permits identifying the precise segment of the population whose relative income best explains time changes in crime.
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