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.     

New markets,old struggles: Large and small farmers in the export agriculture of coastal Peru

Although the output of high-value crops in Peru has increased during the era of ‘globalization’, producers still tend to contextualize this development in relation to the 1969 agrarian reform. Considered here is how large and small farmers in the Cañete region perceive the changes that have occurred in agriculture since a generation ago, with particular reference to market competition and the implications of the new economic conditions for environmental sustainability. Despite the fact that farmers located at each end of the rural hierarchy experience the economic impact of globalization differently, small cultivators exporting their produce to the international market being particularly vulnerable to its laissez faire regime, they nevertheless share a common belief in the importance of agriculture for the well-being of the nation. The latter, it is suggested, is a discourse that reproduces much of the ideology associated historically with the agrarian and foundation myths.