Health, Crime, and the Labor Market: Theory and Policy Analysis

71 Pages Posted: 4 Feb 2019 Last revised: 7 Jul 2020

See all articles by Yuki Otsu

Yuki Otsu

University of Tokyo - Center for Spatial Information Science (CSIS)

C. Y. Kelvin Yuen

Washington University in St. Louis - Department of Economics

Date Written: June 13, 2020

Abstract

Health has a significant impact on labor market outcomes, and thus on criminal decisions. We document that health positively affects an individual's wage and employment probability but has a negative effect on criminal activities. To study the economic mechanism behind these findings, we build an equilibrium search model of health, crime, and the labor market. We perform public policy experiments in the model and study their impacts on crime and the labor market. We find that by introducing Medicare-for-all, the crime rate in the economy would decrease by one percentage point while the aggregate output would increase by more than 10%.

Keywords: health, crime, labor search, health insurance, crime policy, Medicare-for-all

JEL Classification: E24, I10, I13, J01, J08

Suggested Citation

Otsu, Yuki and Yuen, C. Y. Kelvin, Health, Crime, and the Labor Market: Theory and Policy Analysis (June 13, 2020). Available at SSRN: https://ssrn.com/abstract=3324721 or http://dx.doi.org/10.2139/ssrn.3324721

Yuki Otsu

University of Tokyo - Center for Spatial Information Science (CSIS) ( email )

5-1-5, Kashiwanoha
Kashiwa-shi, Chiba, 277-8568
Japan

C. Y. Kelvin Yuen (Contact Author)

Washington University in St. Louis - Department of Economics ( email )

One Brookings Drive
St. Louis, MO 63130
United States

HOME PAGE: http://sites.wustl.edu/yuen/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
199
Abstract Views
1,004
rank
183,407
PlumX Metrics