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Globalisation, crime and wage inequality: a theoretical analysis
Indian Growth and Development Review Pub Date : 2020-08-03 , DOI: 10.1108/igdr-12-2019-0132
Manash Ranjan Gupta

Purpose

This study aims to focus on the effects of economic globalisation programme on the problems of criminal activities and on the degree of skilled–unskilled wage inequality.

Design/methodology/approach

A competitive general equilibrium model of a small open economy is developed. Unskilled labour moves from the production sector to the criminal sector. Those who join the criminal sector snatch a part of capitalists’ income and skilled workers’ income to finance their consumption and face positive probability of being caught and punished. The size of the criminal sector and the rental rate on capital are simultaneously determined in the short-run equilibrium of this model where factor endowments are exogenously given at a particular point of time.

Findings

An increase in the capital endowment resulting from an exogenous foreign capital inflow raises demand for labour and wage rates in both the sectors. So, it lowers the rental rate on capital and thus aggravates the problem of skilled–unskilled wage inequality because the skilled labour using sector is more capital intensive than the other production sector. However, it may lower the size of the criminal sector and thus may raise the level of the gross domestic product.

Originality/value

There exists substantial theoretical works on the problem of skilled–unskilled wage inequality, but none of these works focuses on the general equilibrium allocation of unskilled labour to the criminal sector. On the other hand, existing models specialised to analyse theoretical implications of crime and punishment do not focus on the interaction between crime and wage inequality.



中文翻译:

全球化,犯罪和工资不平等:理论分析

目的

这项研究的重点是经济全球化计划对犯罪活动问题的影响以及技术人员与非技术人员工资不平等的程度。

设计/方法/方法

建立了小型开放经济的竞争性一般均衡模型。非熟练劳动力从生产部门转移到犯罪部门。那些加入犯罪部门的人抢走了一部分资本家的收入和熟练工人的收入,以资助他们的消费,并面临被捕和受到惩罚的积极可能性。在此模型的短期均衡中,犯罪部门的规模和资本的租金率是同时确定的,在该模型中,要素end赋是在特定时间点外生给出的。

发现

外来外国资本流入导致资本ment赋的增加,这两个部门对劳动力和工资率的需求都增加了。因此,这降低了资本的租金率,因此加剧了技术工人与非技术工人工资不平等的问题,因为技术工人使用部门的资本密集度高于其他生产部门。但是,这可能会减少犯罪部门的规模,从而可能提高国内生产总值的水平。

创意/价值

关于技术工人与非技术工人工资不平等的问题,已有大量的理论著作,但这些著作都没有集中于非技术工人对犯罪部门的一般均衡分配。另一方面,专门用于分析犯罪和惩罚的理论含义的现有模型并不关注犯罪与工资不平等之间的相互作用。

更新日期:2020-08-03
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