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  3. American Economic Review
  4. March 2004
  5. The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports

  • Lance Lochner
  • Enrico Moretti
American Economic Review
vol. 94, no. 1, March 2004
(pp. 155–189)
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Abstract

We estimate the effect of education on participation in criminal activity using changes in state compulsory schooling laws over time to account for the endogeneity of schooling decisions. Using Census and FBI data, we find that schooling significantly reduces the probability of incarceration and arrest. NLSY data indicate that our results are caused by changes in criminal behavior and not differences in the probability of arrest or incarceration conditional on crime. We estimate that the social savings from crime reduction associated with high school graduation (for men) is about 14 -26 percent of the private return.

Citation

Lochner, Lance, and Enrico Moretti. 2004. "The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports." American Economic Review, 94 (1): 155–189. DOI: 10.1257/000282804322970751

JEL Classification

  • I20 Education and Research Institutions: General
  • J24 Human Capital; Skills; Occupational Choice; Labor Productivity
  • K42 Illegal Behavior and the Enforcement of Law