Lilik Sugiharti, - and Miguel Angel Esquivias Padilla, 041144005 and Mohd Shahidan Shaari, - and LUSSI AGUSTIN, 081211831051 and Hilda Rohmawati, - (2022) Criminality and Income Inequality in Indonesia. Social Sciences, 11. pp. 1-19. ISSN 2076-0760

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Abstract

We investigate whether a nexus exists between income inequality and criminal activity in Indonesia. Additionally, we examine socioeconomic variables and potential links with criminal actions (i.e., crime rate, murder, rape, physical abuse, robbery, and fraud). We use the generalized method of moments (GMM) approach, employing data for 34 provinces in Indonesia over the period of 2010–2019. The results indicate that income inequality is associated with higher criminal activity. Overall, lower unemployment, larger investment (foreign and domestic), and higher human development (education and health) can help reduce crime in Indonesia. However, higher income can reduce physical abuse and crime rates, but theft and fraud increase with income growth. Rising unemployment increases rape, abuse, robbery, and fraud. Still, unemployment does not affect murder, suggesting that non-economic factors are dominant in explaining murder and violent crimes. Furthermore, income inequality can increase robbery and fraud, although it has no significant effects on murder, rape, and abuse. Government spending on social assistance and more efficient settlement of criminal acts can lower crime rates.

Item Type:	Article
Uncontrolled Keywords:	crime rate; well-being; income inequality; quality education; human development; life expectancy
Subjects:	H Social Sciences H Social Sciences > HB Economic Theory H Social Sciences > HJ Public Finance
Creators:	Creators NIM Lilik Sugiharti, - NIDN0025056804 Miguel Angel Esquivias Padilla, 041144005 UNSPECIFIED Mohd Shahidan Shaari, - UNSPECIFIED LUSSI AGUSTIN, 081211831051 UNSPECIFIED Hilda Rohmawati, - NIM041611133032
Depositing User:	Tn Sugeng Riyanto
Date Deposited:	18 Apr 2023 04:53
Last Modified:	18 Apr 2023 04:53
URI:	http://repository.unair.ac.id/id/eprint/123833
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