TY - JOUR

T1 - Is there a compensating wage differential for high crime levels?

T2 - First evidence from Europe

AU - Braakmann, Nils

PY - 2009/11/1

Y1 - 2009/11/1

N2 - This paper investigates whether high regional crime levels lead to a compensating wage differential paid by firms in the respective region. Using data from German social-security records, official police statistics and official statistics for 2003-2006, I consider both violent and non-violent crimes and use three-way error-components estimators to control for individual and regional heterogeneity. The findings suggest that wages are practically unrelated to changes in crime rates. This result is robust over a wide range of subgroups. There is, however, some evidence that crime rates influence land prices. © 2009 Elsevier Inc. All rights reserved.

AB - This paper investigates whether high regional crime levels lead to a compensating wage differential paid by firms in the respective region. Using data from German social-security records, official police statistics and official statistics for 2003-2006, I consider both violent and non-violent crimes and use three-way error-components estimators to control for individual and regional heterogeneity. The findings suggest that wages are practically unrelated to changes in crime rates. This result is robust over a wide range of subgroups. There is, however, some evidence that crime rates influence land prices. © 2009 Elsevier Inc. All rights reserved.

KW - Economics

KW - Compensating wage differential

KW - Crime

KW - Three-way error-components model

UR - http://www.scopus.com/inward/record.url?scp=70349420802&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/d38e30fb-3ef1-36b9-a420-1a72f4f89cdb/

U2 - 10.1016/j.jue.2009.08.002

DO - 10.1016/j.jue.2009.08.002

M3 - Journal articles

VL - 66

SP - 218

EP - 231

JO - Journal of Urban Economics

JF - Journal of Urban Economics

SN - 0094-1190

IS - 3

ER -