CRIME, EARNINGS INEQUALITY AND UNEMPLOYMENT IN ENGLAND AND WALES

Masih and Masih (1996) recently presented an analysis of crime in a te mporal Granger-causal framework, and explored empirically some of the determinants of crime in Australia using annual data over the period 1 963-90. The purpose of this paper is to examine the role exerted by ea rnings inequality and unemployment in the determination of crime. Usin g a panel of annual regional data from 1979 to 1993 for England and Wa les, we find that the growth in earnings inequality and unemployment i mpact positively on five types of criminal activity examined.