Quantitative Research Of The Relationship Between The Unemployment Rate And The Crime Rate Of China

The Economics of Crime is one interdisciplinary science of Criminology and Economics. Since the scholars put forward the methods of economics to be applied in the study of crime, the Economics of Crime has been arising tremendous attention of scholars. The researches connect the utility analysis, cost analysis, the concept of exception, etc with the criminal affairs, and then the econometric helps to accomplish the analysis and achieve the conclusions. As usual, relative policies have been made to the policy makers. Besides, they fulfill the relative theoretical foundations to further the study of the Economics of Crime, which allows the framework of the Economics of Crime to be much more sophisticated. This dissertation put emphasis on one focusing issue, which is the relationship between unemployment rate and crime rate. As we know, the development of economics, the discrepancy of income, the urbanization, the education level and the labor market are all factors influencing the crime rate. Specifically, the crime rate is the dependent variable and the crime rate is the independent variable. Besides this, the discrepancy of income, education level, and density of population, the expenditures of the judicial departments, the mobility of population and the consumption of alcoholic are set to be the control variables. The data are collected from the panel data of cities, and with these, empirical analysis is calculated by using the Fixed Effect Model and Random Effect Model. According to our consequences of regression, we find that significant positive relationship exists between the unemployment rate and the crime rate, in specific quantity is that one percentage rose in unemployment rate resulting0.67percentage increases in the crime rate. Meanwhile, the development of economics, the consumption of alcohol, the mobility of population and the discrepancy of income have significant positive relationships with crime rate. On the contrary, the education level, the density of population and the expenditures of the judicial departments have no significant relationship with the crime rate.