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Title: A Life-Cycle Model of Human Capital and Crime: Estimating Deterrent Effects of Wage and Education Subsidies
Resulting in 1 citation.
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Lochner, Lance John |
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A Life-Cycle Model of Human Capital and Crime: Estimating Deterrent Effects of Wage and Education Subsidies Ph.D. Dissertation, The University Of Chicago, 1998 Cohort(s): NLSY79 Publisher: UMI - University Microfilms, Bell and Howell Information and Learning Keyword(s): High School Completion/Graduates; Human Capital; Life Cycle Research; Modeling This study develops a dynamic model of an individual's decision to work, to invest in human capital, or to commit crime. The model explains declining criminal participation with age and duration dependence of criminal activity. The effects of high school graduation and ability on crime are estimated using data from the National Longitudinal Survey of Youth. Both significantly reduce criminal participation among young men. High school graduation also reduces the probability that a young man will become incarcerated. The model developed in this study is used to explore the impacts of wage and education subsidies and of wage taxes on crime, work, and investment in skills. Parameters of the model are estimated for men, and those estimates are used to show that skill investment subsidies substantially lower aggregate crime and raise earnings from work. Permanent wage subsidies have similar impacts, although their effects are much smaller. For individuals who only participate in crime for afew years, short-term wage subsidies in early periods of a worker's career are effective criminal deterrents; however, these subsidies lower skill investment and may increase crime rates for long-term criminals after they are discontinued. In aggregate, a uniform short-term wage subsidy can lower labor earnings and raise crime. Finally, we show that a program which corrects for deficient families can substantially raise legitimate earnings and lower crime. |
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Bibliography Citation
Lochner, Lance John. A Life-Cycle Model of Human Capital and Crime: Estimating Deterrent Effects of Wage and Education Subsidies. Ph.D. Dissertation, The University Of Chicago, 1998. |