Striking at the Roots of Crime: The Impact of Social Welfare Spending on Crime During the Great Depression / Ryan S. Johnson, Shawn Kantor, Price V. Fishback.

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Johnson, Ryan S

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Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w12825.Publication details: Cambridge, Mass. National Bureau of Economic Research 2007.Description: 1 online resource: illustrations (black and white)Subject(s):

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Abstract: The Great Depression of the 1930s led contemporaries to worry that people hit by hard times would turn to crime in their efforts to survive. Franklin Roosevelt argued that the unprecedented and massive expansion in relief efforts "struck at the roots of crime" by providing subsistence income to needy families. After constructing a panel data set for 81 large American cities for the years 1930 through 1940, we estimate the impact of relief spending by all levels of government on crime rates. The analysis suggests that a ten percent increase in relief spending during the 1930s lowered property crime by roughly 1.5 percent. By limiting the amount of free time for relief recipients, work relief was more effective than direct relief in reducing crime. More generally, our results indicate that social insurance, which tends to be understudied in economic analyses of crime, should be more explicitly and more carefully incorporated into the analysis of temporal and spatial variations in criminal activity.

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Holdings
Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w12825 (Browse shelf(Opens below))	Not For Loan

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January 2007.

The Great Depression of the 1930s led contemporaries to worry that people hit by hard times would turn to crime in their efforts to survive. Franklin Roosevelt argued that the unprecedented and massive expansion in relief efforts "struck at the roots of crime" by providing subsistence income to needy families. After constructing a panel data set for 81 large American cities for the years 1930 through 1940, we estimate the impact of relief spending by all levels of government on crime rates. The analysis suggests that a ten percent increase in relief spending during the 1930s lowered property crime by roughly 1.5 percent. By limiting the amount of free time for relief recipients, work relief was more effective than direct relief in reducing crime. More generally, our results indicate that social insurance, which tends to be understudied in economic analyses of crime, should be more explicitly and more carefully incorporated into the analysis of temporal and spatial variations in criminal activity.