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Author: Fellay, Giulio
Resulting in 1 citation.
1. Fellay, Giulio
Gallipoli, Giovanni
Education and Crime Over the Life Cycle
Working Paper, Department of Economics, University of British Columbia, [N.D.].
Cohort(s): NLSY79
Publisher: Department of Economics, University of British Columbia
Keyword(s): Crime; Education; Endogeneity; Heterogeneity; High School Completion/Graduates; Life Cycle Research; Poverty; Welfare

Permission to reprint the abstract has not been received from the publisher.

We develop an overlapping-generation, life-cycle model with endogenous education and crime choices. Education and crime depend on different dimensions of heterogeneity. We apply the model to property crime and calibrate it to U.S. data. We compare two policies: subsidizing high school completion and increasing the length of prison sentences. We find that targeting crime reductions through increases in high school graduation rates entails large efficiency and welfare gains. These gains are absent if the same crime reduction is achieved by increasing the length of sentences. The cost-effectiveness of high school subsidies increases significantly if they are targeted at the wealth poor. We find that general equilibrium effects explain half of the reduction in crime from subsidizing high school and are non-negligible even for interventions targeted at low levels of wealth. Crucially, the effect of small equilibrium price changes is magnified by their interaction with the underlying individual heterogeneity.
Bibliography Citation
Fellay, Giulio and Giovanni Gallipoli. "Education and Crime Over the Life Cycle." Working Paper, Department of Economics, University of British Columbia, [N.D.].