Crime and Unemployment: Evidence from Europe

This paper investigates the impact of unemployment on crime using a country-level panel data set from Europe that contains consistently-measured crime and police force statistics. Unemployment has a positive impact on monetary crimes, and instrumenting unemployment with the exchange rate produces larger estimates than those obtained from OLS specifications. The unemployment rate is decomposed into various components such as gender-specific and education-specific unemployment. The analysis of specific population sub-groups’ unemployment reveals that about 65% of the overall impact of unemployment on crime is attributable to the unemployment of males with low education.

Joblessness and Perceptions about the Effectiveness of Democracy

Using micro data on more than 130,000 individuals from 69 countries, we analyze the extent to which joblessness of the individuals and the prevailing unemployment rate in the country impact perceptions of the effectiveness of democracy. We find that personal joblessness experience translates into negative opinions about the effectiveness of democracy and it increases the desire for a rouge leader. Evidence from people who live in European countries suggests that being jobless for more than a year is the source of discontent. We also find that well-educated and wealthier individuals are less likely to indicate that democracies are ineffective, regardless of joblessness. People's beliefs about the effectiveness of democracy as system of governance are also shaped by the unemployment rate in countries with low levels of democracy. The results suggest that periods of high unemployment and joblessness could hinder the development of democracy or threaten its existence.unemployment duration, democracy, education, development, World Values Survey

The Impact of Institutions and Development on Happiness

This paper demonstrates that institutional factors influence the subjective well-being of individuals differently in rich versus poor countries. A lower level of corruption, a more democratic government and better civil rights increase the well-being of individuals in rich countries, whereas an increase in per capita income has no impact. On the contrary, in poor countries the extent of corruption, democracy and civil rights have no influence on happiness, but an increase in per capita income impacts happiness positively. This stark contrast may be due to the difference of preferences over income and institutional factors.

Is Leisure a Normal Good? Evidence from the European Parliament

Prior to July 2009, salaries of the members of the European Parliament were paid by their home country and there were substantial salary differences between parliamentarians representing different EU countries. Starting in July 2009, the salary of each member of the Parliament is pegged to 38.5% of a European Court judge’s salary, paid by the EU. This created an exogenous change in salaries, the magnitude and direction of which varied substantially between parliamentarians. Parliamentarians receive per diem compensation for each plenary session they attend, but salaries constitute unearned income as they are independent of attendance to the Parliament. Using detailed information on each parliamentarian of the European Parliament between 2004 and 2011 we show that an increase in salaries reduces attendance to plenary sessions and an increase in per diem compensation increases it. We also show that corruption in home country has a negative effect on attendance for seasoned members of the Parliament.

Is Leisure a Normal Good? Evidence from the European Parliament

Prior to July 2009, salaries of the members of the European Parliament were paid by their home country and there were substantial salary differences between parliamentarians representing different EU countries. Starting in July 2009, the salary of each member of the Parliament is pegged to 38.5% of a European Court judge's salary, paid by the EU. This created an exogenous change in salaries, the magnitude and direction of which varied substantially between parliamentarians. Parliamentarians receive per diem compensation for each plenary session they attend, but salaries constitute unearned income as they are independent of attendance to the Parliament. Using detailed information on each parliamentarian of the European Parliament between 2004 and 2011 we show that an increase in salaries reduces attendance to plenary sessions and an increase in per diem compensation increases it. We also show that corruption in home country has a negative effect on attendance for seasoned members of the Parliament.labor supply, corruption, EU

Essays on the economics of crime

This dissertation includes three essays on the application of economics to various aspects of crime and criminal activity. The research presented in this dissertation points out a cause and a consequence of crime as well as the possible influence of a law on criminal activity. The first chapter provides an introduction to the ways that economic reasoning can be used to analyze criminal activity. The second chapter examines individuals\u27 gun carrying activity in the presence of concealed weapon laws. The results suggest that allowing law-abiding individuals to carry concealed handguns is more likely to reduce crime than to increase it. Chapter 3 investigates the effect of joblessness on criminal activity using an international panel data set. The results indicate that increase in unemployment causes more property crimes. The fourth chapter presents evidence for the existence of a negative externality of crime. Countries that have higher crime rates suffer from the loss of international tourists and tourism revenue. Chapter 5 summarizes the findings of the dissertation, provides concluding remarks, and discusses opportunities for future research in the economics of crime

Raising MEPs’ salaries causes them to attend fewer meetings, but cutting their salaries increases their attendance rate.

What impact does a parliamentarian’s salary have on the amount of effort they put into representing citizens? Naci Mocan and Duha Altindag outline results from a study on salary changes which took place as part of a change in procedures in the European Parliament in 2009. They note that MEPs who experienced an increase in salary in 2009 attended fewer meetings, while those who experienced a pay cut raised their attendance rate. The results suggest that there is a significant link between the effort of parliamentarians and the amount that they are paid

Joblessness and Perceptions about the Effectiveness of Democracy

Using micro data on more than 130,000 individuals from 69 countries, we analyze the extent to which joblessness of the individuals and the prevailing unemployment rate in the country impact perceptions of the effectiveness of democracy. We find that personal joblessness experience translates into negative opinions about the effectiveness of democracy and it increases the desire for a rogue leader. Evidence from people who live in European countries suggests that being jobless for more than a year is the source of discontent. We also find that well-educated and wealthier individuals are less likely to indicate that democracies are ineffective, regardless of joblessness. People’s beliefs about the effectiveness of democracy as system of governance are also shaped by the unemployment rate in countries with low levels of democracy. The results suggest that periods of high unemployment and joblessness could hinder the development of democracy or threaten its existence.

Is Leisure a Normal Good? Evidence from the European Parliament

Prior to July 2009, salaries of the members of the European Parliament were paid by their home country and there were substantial salary differences between parliamentarians representing different EU countries. Starting in July 2009, the salary of each member of the Parliament is pegged to 38.5% of a European Court judge’s salary, paid by the EU. This created an exogenous change in salaries, the magnitude and direction of which varied substantially between parliamentarians. Parliamentarians receive per diem compensation for each plenary session they attend, but salaries constitute unearned income as they are independent of attendance to the Parliament. Using detailed information on each parliamentarian of the European Parliament between 2004 and 2011 we show that an increase in salaries reduces attendance to plenary sessions and an increase in per diem compensation increases it. We also show that corruption in home country has a negative effect on attendance for seasoned members of the Parliament.

Deterrence and Compellence in Parliament

In most countries, parliamentary immunity protects lawmakers from civil or criminal charges while in office, and it shields them from prosecution for their political speech and actions. We present the first empirical analysis of the impact of parliamentary immunity on the behavior and performance of politicians. Leveraging a constitutional amendment that lifted the immunity of 24 percent of the members of the Turkish Parliament (MPs), we find that losing immunity from prosecution pacifies opposition MPs, who become less diligent (drafting and initiating fewer pieces of legislation or inquiries, delivering fewer and shorter speeches) and less aggressive (interrupting other MPs less frequently). Their tendency to cast dissenting votes against the government is also reduced. These MPs are less likely to be renominated by their parties for the next election, and they are less likely to be reelected. The loss of immunity has no impact on government-aligned MPs