Exploring the relationship between unemployment and property crime

Existing economic studies have revealed conflicting evidence regarding the relationship between unemployment and crime. In this paper we argue that the conflicting evidence that has appeared in previous studies reflects inadequate statistical analysis. Specifically, we argue that insufficient attention has been devoted to questions of functional form. Employing the Box-Cox flexible functional form approach we report evidence to suggest that once the correct functional form of the variables is utilized, a significant positive relationship between male unemployment and property crime is identified, this having fundamental implications for government policy in the fight against crime.