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Income Inequality and Crime: A Review and Explanation of the Time?series Evidence

In contrast to these psycho-sociological perspectives, economic theory has traditionally characterised criminal activity as an occupational choice arising from low risks of being caught. The effects of deterrence have been shown by Ehrlich to modify the ‘price’ of crime through imprisonment. This view sees income inequality as an indicator of the incentives to crime, so that crime will be higher in communities with higher income inequality.

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