Is there a compensating wage differential for high crime levels? First evidence from Europe
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In: Journal of Urban Economics, Vol. 66, No. 3, 01.11.2009, p. 218-231.
Research output: Journal contributions › Journal articles › Research › peer-review
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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 -