Labour market conditions and crime in Greece

Abstract

Purpose: The purpose of this paper is to examine the impact of unemployment on various types of crime in Greece. Design/methodology/approach: A battery of econometric tests, including Granger causality tests, a variance decomposition analysis, and an impulse response analysis are used to explore the nexus between unemployment and 14 different types of crime. Findings: Out of the 14 different types of criminal activity, only in the case of three - vehicle thefts, robberies and contraband & smuggling - was a nexus with unemployment established. Practical implications: Given that such criminal activity is primarily motivated and driven by economic gain, a policy implication is that crime thwarting policies need to be complemented by corresponding labour market interventions, especially in periods of recession, when unemployment emerges as a major problem for disadvantaged social groups. Originality/value: The issue between labour market conditions and crime has not been addressed before in the case of Greece, a country that has experienced a generally growing crime rate. © Emerald Group Publishing Limited.