Professional Documents
Culture Documents
Empirical Analysis
Author(s): David Cantor and Kenneth C. Land
Source: American Sociological Review, Vol. 50, No. 3 (Jun., 1985), pp. 317-332
Published by: American Sociological Association
Stable URL: http://www.jstor.org/stable/2095542 .
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Using annual time-series data for the United States, 1946-1982, two hypotheses are
tested: (1) The level of the unemployment rate in any given year will have a negative
partial contemporaneous effect on detrendedfluctuations (increases or decreases) in
seven Index Crime rates (homicide, rape, aggravated assault, robbery, burglary,
larceny-theft, and motor vehicle theft) in that year. (2) Unemployment-rate
fluctuationsfrom one year to the next will have a positive partial effect on detrended
crime-rate fluctuations in the next year. These hypotheses are developed from a
theoretical model that identifies the former with a criminal opportunity effect, and
the latter with a criminal motivation effect, of aggregate unemployment on crime.
For burglary, robbery and larceny-theft, empirical support is found for the expected
pattern of partial effects. However, the relative sizes of the effects are such that the
total impacts of unemployment-through both partial effects-are negative. In
addition, only the negative-levels effect is exhibited for homicide and motor vehicle
theft, while rape and aggravated assault show no consistent association with either
levels orfluctuations in the unemployment rate. Interpretations for these findings are
discussed.
Does aggregate unemployment have a posi- unemployment rates on crime rates. Then,
tive, negative, or null effect on levels of crime using annual time-series data on the post-
in capitalist societies? This question is cen- World War II United States, we estimate and
trally important both to the construction of study the numericalimplicationsof this model.
sociological theories of crime and to the for- Before describingthe development, identifica-
mulation of social policy (U.S. Congress, tion and estimationof our model, however, we
1978). Accordingly, the unemployment-crime examine, in somewhat more detail, the results
relationship (hereafter denoted the U-C re- of recent empirical research.
lationship) has been the object of much re-
search attentionin sociology and related social
sciences. Yet this research has failed to pro- RECENT STUDIES OF THE
duce consensus about the direction of the re- U-C RELATIONSHIP
lationship: some studies find a positive U-C The existence of a strong relationshipbetween
effect, others conclude that the effect is nega- unemploymentand crime rates has been hy-
tive, and still others infer that the relationship pothesized for over a hundredyears in the so-
is essentially null. cial science literature(see, e.g., Bonger, 1916;
In this paper, we reexamineand clarify the Ehrlich, 1975; Ferri, 1881; Fleischer, 1966;
structureof the U-C relationship.To account Glaser and Rice, 1959; Phillips et al., 1972;
for the generally weak and often inconsistent Sellin, 1937;Thomas, 1925). Much of the cur-
findingsin the empiricalliterature,we develop rent interest in the U-C relationshipwas stim-
a theoreticalmodel that incorporatestwo dis- ulated by Brenner's(1971, 1976, 1978a, 1978b)
tinct and counterbalancingstructuraleffects of studies of the social consequences of national
economic policy. Brennerdraws upon several
traditionsof criminogenictheory to predict a
*Direct all correspondenceto: Kenneth C. Land, positive U-C connection, but the basic idea of
Population Research Center, 1800 Main Building, his approachis that an individual'sinabilityto
University of Texas, Austin, TX 78712. maintain a particularstandard of living as a
The researchreportedhere was supportedin part consequence of becoming unemployed will
by National Science Foundation Grant SES 81- cause a (rationalor irrational)reaction in the
04746andin partby the IC2Institute,The University
of Texas at Austin. However, the conclusionsdo not form of a criminalact. To test this proposition,
necessarily represent the views of the sponsoring Brenner(1976)studies the temporaldependen-
organizations. We are grateful to Lawrence E. cies of homicide rates and prison admissions
Cohen and anonymous referees for helpful com- (for various crimes) on three macroeconomic
ments on earlier versions of this paper. variables: (a) the unemploymentrate, (b) the
American Sociological Review, 1985, Vol. 50 (June:317-332) 317
ling for the differentiallag structure,therefore, This creates a potential discontinuity be-
we can at least partialout some of the motiva- tween pre- and post-1960 estimates. Hence,
tional effect and observe the signs of the con- there is a possibility that inferences from data
currentand lagged coefficients. Second, there analyses of these series may be sensitive to this
are still several unmeasuredconstructs. Con- discontinuity. In the case of the "larceny"
sequently, we can only partially identify: (a) category, moreover, this discontinuity was
the semi-reduced-formeffect throughthe op- made even more severe by a change in the
portunity construct and (b) the semi- UCR definitionin 1973from "larceniesof $50
reduced-formeffect through the motivational and over" to "larceny-theft."While the latter
construct.'3 In this sense, the model has be- definition has been applied in recent volumes
come partially identified. of the Uniform Crime Reports to produce a
consistent series of revised estimates back to
DATA 1960,there is a clear discontinuityat that point
because the "larceny-theft"definitionincludes
We will test this modelfor the post-World War a larger numberof crimes. Thus, we shall be
II U.S. for the Index crimes-nonnegligible particularlysensitive to the possibilitythat our
homicide, forcible rape, aggravated assault, analyses of the larceny series are affected by
robbery, motor vehicle theft, burglary and this definitional discontinuity. Furthermore,
larceny-theft-publishedin the FederalBureau for each of the seven Index Crime series, we
of Investigation's (FBI) Uniform Crime Re- examinethe extent to which the series exhibits
ports (UCR) and the revised series published a shift in level from 1959 to 1960.
by the Office of Management and Budget
(1974). In 1958 the UCR system instituted
major changes in the collection of their data MODELS AND METHODSOF
which make pre- and post-1958 data incom- STATISTICALANALYSIS
patible.14The OMB series accounts for this Ourreview of extant empiricalstudies suggests
discontinuityin ways consistent with the origi- that inferences about the U-C relationship
nal trend in the UCR (Cantor and Cohen, may be sensitive to two possible-"methodsef-
1980).Thus for the years 1946-1959,the crime fects." First, inferences may differ by type of
data analyzed herein were obtained from the crime studied and by whether trends in indi-
OMB publication. For the years 1960-1982, vidual crimes are analyzed separately or are
correspondingannualestimates for the first six groupedinto "violent," "property,"or "total"
Index Crimeswere obtainedfrom the most re- crime rates. Consequently, in order to ac-
cently revised estimates available in the UCR commodate possible differences in the U-C
publications.I5 structural relationships between crimes, we
13 Recall that path-analysisconventions state that
analyze each of the seven Index Crime time
series individually.
the semi-reduced-formeffect of variableA on vari- Second, inferences about the algebraicsign
able B consists of the sum of the directeffect of A on
B plus the indirecteffects throughcertain interven- of the U-C relationshipmay be conditionalon
ing variablesbetween A and B (see Duncan et al., the form and substance of the structural
1972:23-30,for a definitionof the concept of semi- equationsused in the estimation. Usually, the
reducedforms and effects). In the present case, the effects of unemployment-ratefluctuations on
model postulates no direct effect, and each of the crime rates are estimated in the context of
indirecteffects contains only two linkages. Conse- structuralequations that include several other
quently, the semi-reduced-formeffects are quite variables. Typically, the latter variables are
simple. chosen to accountfor secular changes in crime
14 It is not plausible that the trends and fluctua-
rates as opposed to the fluctuations around
tions in all of the Index Crime series for the post- secular trends in crime that unemployment
WorldWar II years can be accounted for solely by
administrativechanges in police departmentsand rates might explain.'6 However, the exact list
trends in crime reporting rates. For cogent
arguments to this effect, see Cohen et al. Table 2 of the following annual UCR publications:
(1980:94-96). Extendingthe analysis prior to 1946 1960-1966, UCR-1975; 1967, UCR-1976; 1968,
introducesproblemsassociated with separatingthe UCR-1977; 1969, UCR-1978; 1970, UCR-1979;
impacts of World War II on aggregate economic 1971, UCR-1980; 1972, UCR-1981; 1973-1982,
trends. In addition, Cantor and Cohen (1980) find UCR-1982.
that, in the case of homicide,the UCR data priorto 16 Variablesused by researchersto explainsecular
this periodare substantiallyaffectedby samplingand trends in crime include age composition of the
coverage problems. Since homicide is generally population(Wellford,1973),the proportionof young
consideredthe most reliablecrimemeasurecollected blackmalesin the populationandthe consumerprice
by the FBI, we do not feel analysis of any Index index (Fox, 1976), capital punishment (Ehrlich,
crime trend priorto 1946is warranted. 1973),residentialpopulationdensity and availability
'5 Data for each of the years were taken from of propertytargets (Cohen et al., 1980).
where Ct denotes the crime rate in year t, Ut In brief, if an Index Crime series exhibits a
denotes the unemploymentrate in year t, in linear seculartrendin levels but no trendin its
denotes the naturallogarithmtransformation, variability,then the residualsobtained by fit-
the first- and second-differenceoperators are ting the unlogged, first-differenced model of
as definedin equations(1) and (2), a, f31,and 12 equation (4) should exhibit less evidence of
are constantsto be estimated,and E is a zero- autocorrelationthan those that would be ob-
mean, constant variance, serially uncorrelated tained by fittingany of the other three models.
errorterm. Which of these alternativemodels Similarly, if the series contains a quadratic
"best fits" a crime rate series depends on the trend in levels but no trend in variability,the
type of variabilitythe series exhibits. By "best unlogged, second-differencedmodel of equa-
fits," we mean that alternative of models tion (5) should produce residuals with little
(4)-(7) which producesresidualsthat are most evidence of autocorrelation.By comparison,if
consistent with the white-noise specification
on the error term. This, of course, must be
also be noted that the Durbin-Watsontest can detect
assessed by computinga suitabletest statistic. only first-orderserial correlation of disturbances.
Because none of models (4)-(7) contains a Consequently,its use leaves open the possibilitythat
stochastic laggeddependentvariable,the con- the residualsof our estimatedequationscontain un-
ventional Durbin-Watsontest for autocorre- detected higher-orderdependencies. Based on the
lated disturbancesis suitable for this purpose computationof Box-JenkinsQ-statistics (Box and
(cf. Johnston, 1972:250-54).'9 Jenkins, 1976)for various higher-orderlags of the
residual correlations,we find no evidence for this
'9 Takingfirst differences,for example, is equiva- possibility for six of the seven Index crimes. The
lent to settingthe coefficientof the laggeddependent exception is larceny-theft,which has significantcor-
variable in a stochastic first-differencedequation relationsof residualsat lags 2, 3 and 5. Given the
equal to one. Since this is done a priori,there is no measurementproblems and discontinuitiesof this
coefficient to estimate and hence no stochastic series, however, we are not willing to rush to a
lagged dependent variable, as required for strict substantiveinterpretationof what may be a statisti-
applicabilityof the Durbin-Watsontest. It should cal anomaly.
Table 1. Continued
Panel B: ContemporaneousEffect RestrictedModels
(df= 34, 33 for 1st and 2nd differencedequations, respectively)
DependentVariable Intercept Ut DW R2
Murder 0.5500 -0.0912 .7308a .0942
(First Difference) (2.3276)*** (2.1542)**
Murder* 0.4718 -0.0874 2.2940C .1173
(Second Difference) (2.2575)*** (2.3495)**
Rape 1.3054 -0.1146 0.9415a 0.0000
(First Difference) (1.8350)*** (0.8983)
Rape* 0.8164 -0.1613 2.5188c 0.0172
(Second Difference) (1.1376) (1.2627)
Assault 7.0535 -0.2092 0.9137a 0.0000
(First Difference) (1.7187)*** (0.2842)
Assault* 3.3480 -0.6336 2.4648c 0.0000
(Second Difference) (0.8303) (0.8825)
Robbery 14.484 -1.8098 1.1389a 0.0256
(First Difference) (1.9913)*** (1.3875)**
Robbery* 18.319 -3.4742 2.0094c 0.1513
(Second Difference) (2.4944)*** (2.6571)**
Burglary 91.290 -10.972 1.3108b 0.0403
(First Difference) (2.3441)*** (1.5711)**
Burglary* 103.41 -19.960 2.1923c 0.1526
(Second Difference) (2.4619)*** (2.6691)**
Auto Theft 39.150 -5.7941 0.9705a 0.1589
(First Difference) (3.3424)*** (2.7585)**
Auto Theft* 18.988 -3.4231 2.1888c 0.0404
(Second Difference) (1.5401) (1.5587)**
Larceny-Theft* 71.662 -13.816 1.3745b 0.1050
(First Difference) (1.1019) (1.0826)
Larceny-Theft 133.12 -28.644 1.7804c 0.0565
(Second Difference) (1.7726)*** (1.9863)**
Dummyfor Larceny-theft,First Difference: 101.40 (t = 2.4557).
Dummyfor Larceny-theft,Second Difference:27.409 (t = 0.5901).
the crime series combines either a linear or a A reports the results of applyingthe full ver-
quadratictrendin levels with a secularincrease sions of the unlogged alternative models (4)
(or decrease) in variability, then the log- and (5)'21 Those equationsthat are considered
transformed, first-differenced and log-
transformed, second-differenced models of were made specific to subpopulationswith high of-
equations(6) and (7), respectively, shouldpos- fense rates-say, males age 15-29. However, since
sess residuals with the least evidence of au- time trends in the generaland group-specificunem-
tocorrelation. Our choice of the best-fitting ploymentrates are highly correlated,this change in
equation is based on that which has a the definitionof the unemploymentvariableswould
mainlyaffectthe size of the regressioncoefficientsof
Durbin-Watsontest statistic indicatingno au-
equations (4)-(7), not their statistical significance.
tocorrelationof disturbancesand is the most 21 The correspondinglogged versions (6) and (7)
parsimonious (i.e., has the fewest trans-
formations). produced similar substantive results. The primary
differenceswere: (1) the logged second-differenced
version for homicide did not have a significant
RESULTS negative contemporaneouscoefficient; (2) the fluc-
tuationtermfor the first-differencedversionfor rape
Numerical results from application of the was significantlynegative;(3) the fluctuationterm in
foregoing models to the seven Index Crime the first-differencedversion of larceny drops to in-
series, 1946-1982,are given in Table 1.20 Panel significance;(4) the contemporaneousterm in the
second-differencedversion of larceny was not sig-
20 The annual average unemployment rate and nificantlynegative;and (5) the first-differencedver-
changes thereinused in the estimationof equations sions of the rape and assault equationsborderedon
(4)-(7) are taken from annual governmentpublica- having an acceptable Durbin-Watsonstatistic (rape
tions (1946-1979 from U.S. Departmentof Labor, = 1.36 and assault = 1.31, which are both in the
1980,TableA-1; 1980-1982fromExecutive Officeof indeterminaterange for the one percent level of
the President,1984,Table B-29). It mightbe thought significance).The significanceof the coefficients in
that the relationshipsmodeled in equations (4)-(7) these equations, however, did not indicateany sub-
would be stronger if the unemploymentvariables stantialchange in the conclusions stated below.
the best fitting,accordingto the above criteria, The finalequationswere chosen primarilyon
are starred.In order to ascertainthe extent to the basis of evidence of no autocorrelation,as
which the final coefficients may be spuriously indicated by the DW statistic. The first-
influencedby collinearity between the unem- differenced version for larceny and the
ployment and unemployment-changeseries, second-differencedversion for all the other
we also report the restricted models corre- crimes meet our criteria of displaying no au-
spondingto each of the equations in Panels B tocorrelation.Hence, it can be inferredthat the
and C.22 statistical relationshipsreported in these ver-
sions are not "spuriousregressions"(Granger
22
An examination of the data-series discon- and Newbold, 1974) and it is meaningfulto
tinuitiesat the 1960splicingdate noted earlierin the interpretthe starredequations substantively.
text revealedthat there is a change in level only for
the larceny-theftseries. Consequently,we estimated larcenies). Consequently, for the first-differenced
the larceny-theftmodels with a dummy variableto series, we substitutedthe observed mean first dif-
controlfor the changein level from 1959'andearlier ference after the 1960-1959differencefor use in the
to 1960andafter.The correspondingcoefficientsare regression. For the second-differencedseries, the
statisticallysignificantand are given in the footnotes observed mean of (C,) before the 1960-1959 dif-
of Table 1. Applying the transformations(4)-(7) ference was used for the 1960-1959difference.The
combines the discontinuousjump in larcen'-theft observed mean of (Ctl) after the 1960-1959 dif-
between 1959-1960in an illogicalway (i.e.. larcenies ference was used for the 1960-1959 difference for
of $50 and over, while 1960 and beyond is for all (C t-l-
for robberythan for burglary.This is expected cesses. We have argued that any inference
since the original robbery equation exhibited about the effect of the unemploymentrate has
strongersigns of autocorrelations. to account for both criminalopportunityand
For the three property crimes that exhibit criminal-motivationeffects. Neglect of both of
the predicted negative-positive pattern, the these factors has led to finding inconsistent
relative sizes of the estimated coefficients in empiricalresults on this topic, since the total
Tables 1 and 2 imply that the total impacts of a effect of the unemploymentrate is the sum of
cyclical increase in economic activity, as indi- positive motivationaland negativeopportunity
cated by changes in the unemploymentrate, impacts.
are negative.25For instance, suppose that the Our empirical results indicate a small, but
unemploymentrateincreasesfrom6 percentin significant, total effect of the unemployment
year t- 1 to 9 percent in year t-a not unrea- rate on five of the seven Index crimes tested
sonable example for the U.S. in recent years. here. Weak supportwas found for the timing
Then the coefficients imply that the larceny hypotheses proposed to identify the positive
rate is expected to decrease in year t by and negative effects. Unlike most of the previ-
145.33-31.180(9) + 38.464(3) = - 19.898 ous studies on this topic, therefore, this
crimes reported per 100,000 population. Cal- analysisfoundevidence for both a positive and
culations using the correspondingcoefficients negative effect of economic activity on crime.
for robberyand burglaryin Table 2 show simi- It is the case, however, that these results indi-
lar results. Thus, even though an increase in cate a negative partial effect across all the
the unemploymentrate has a positive fluctua- types of crimes showing a significant effect
tion effect on these crimes, the relativesizes of (i.e., homicide,robbery,burglary,larceny-theft
the estimated coefficients for the opportunity and motor vehicle theft). Evidence for a sig-
and motivationeffects are such that the total nificant positive partial effect was found
impacts of an increase in the unemployment primarilyfor crimes that contain a property
rate are negative-at least within the typical component (i.e., robbery, burglary and lar-
rangesof U.S. unemploymentlevels and fluc- ceny).26
tuations. The absence of any measurableeconomic-
hardshipinfluenceon the purelyviolent crimes
is not surprisingin light of the highly individu-
DISCUSSION AND CONCLUSIONS alistic factors that are associated with violent
Previous analyses of the U-C relationship behavior (Wolfgangand Weiner, 1982). While
have greatly oversimplified the causal pro- this fact has been recognized by at least one
theorist (Merton, 1938), very few recent em-
25 In econometric terminology, the distinctions pirical investigations (e.g., Brenner, 1976;
dealt with here pertainto the differences between Ehrlich, 1975)have attendedto this distinction.
impact (contemporaneous) and total multipliers(for It is, of course, not possible to rule out the
formaldefinitionsandexamplesof the concepts, see contingency that the findings reported herein
Theil, 1971:465-66).In the presentanalysis, the im- are spurious due to the inappropriatenessof
pact multipliersare given by the algebraicsums of
the coefficients of U. and AUt in Table 2 for each
26 Of course, as with all statistical analyses, our
equation;i.e., -0.0247 for robberyand +6.3450 for
burglary.These suggest an essentially null impact empiricalinferencesare conditionalon the observed
multiplierfor robbery and a small positive impact rangesof variationof the variablesin our data. Thus,
multiplierfor burglary.In both cases, however, the we cannot extrapolateour findings to situationsof
computationsgiven in the text show that the total extremely high levels or fluctuationsof unemploy-
effects are large and negative. ment.