Unemployment and crime: the role of apprehension

An increase in the unemployment rate decreases the opportunity cost of crime and increases the crime rate according to standard microeconomics models. However, a large body of empirical research has shown that an increase in unemployment may increase or decrease crime. By incorporating the return to crime into standard economic models, this paper shows that an increase in unemployment, as in recessions, decreases the opportunity cost of crime and the return to crime as well. As a result, the effect of unemployment on crime is ambiguous and depends on the apprehension rate. An increase in the unemployment rate tends to decrease the crime rate at lower apprehension rates, but to increase it at higher apprehension rates. An increase in the generosity of unemployment insurance benefits does not necessarily reduce the crime rate, and the effect of more generous unemployment insurance on crime depends again on the apprehension rate.     

When discourse trumps policy: Transitional justice in unified Germany

Attempts at realising transitional justice can be divided broadly into legal-administrative and truth-telling measures. Whereas criminal trials, vetting, and restitution procedures target specific groups and tend to be short-lived, history lessons try to shape historical and political identities, with long-term implications. Most literature on transitional justice tends to focus on either one or the other, but, using the example of the former East Germany, I call attention to their interaction, which is crucial for understanding the dynamics of dealing with the communist past. In the early 1990s, reckoning with the past turned into a major preoccupation, but, soon, demands for transitional justice were overwhelmed by demands for economic and social justice and matters of identity. The legal outcome was more moderate than could have been anticipated at the beginning of the process and was ultimately defied by an equally important and comprehensive political discourse; with time, history lessons claimed center stage. Their discourse privileged retribution over reconciliation and left more potent legacies than legal-administrative restraint.