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Leaders in Juvenile Crime

Author

Listed:
  • Díaz, Carlos

    (Catholic University of Uruguay)

  • Patacchini, Eleonora

    (Cornell University)

  • Verdier, Thierry

    (Paris School of Economics)

  • Zenou, Yves

    (Monash University)

Abstract
This paper presents a new theory of crime where leaders transmit a crime technology and act as a role model for other criminals. We show that, in equilibrium, an individual's crime effort and criminal decisions depend on the geodesic distance to the leader in his or her network of social contacts. By using data on friendship networks among U.S. high-school students, we structurally estimate the model and find evidence supporting its predictions. In particular, by using a definition of a criminal leader that is exogenous to the network formation of friendship links, we find that the longer is the distance to the leader, the lower is the criminal activity of the delinquents and the less likely they are to become criminals. We finally perform a counterfactual experiment that reveals that a policy that removes all criminal leaders from a school can, on average, reduce criminal activity by about 20% and the individual probability of becoming a criminal by 10%.

Suggested Citation

  • Díaz, Carlos & Patacchini, Eleonora & Verdier, Thierry & Zenou, Yves, 2021. "Leaders in Juvenile Crime," IZA Discussion Papers 14801, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp14801
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    References listed on IDEAS

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    Cited by:

    1. Lindquist, Matthew J. & Zenou, Yves, 2019. "Crime and Networks: 10 Policy Lessons," IZA Discussion Papers 12534, Institute of Labor Economics (IZA).
    2. Rose, C.; & Williams, J.; & Bretteville-Jensen, A.L.;, 2024. "Do Peers Support or Subvert Recovery from Substance Use Disorders," Health, Econometrics and Data Group (HEDG) Working Papers 24/18, HEDG, c/o Department of Economics, University of York.

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    More about this item

    Keywords

    closeness centrality; criminal decisions; social distance; crime leaders;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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