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Racial composition, unemployment, and crime: dealing with inconsistencies in panel designs.

Abstract

Racial composition and unemployment have appeared as either theoretically-relevant controls or variables of substantive interest in numerous studies of crime. While there is no clear consensus in the literature as to their statistical significance, the lack of consensus has been most apparent in panel analyses with unit fixed effects. One explanation for this is that racial composition and unemployment are fairly invariant, or slow-moving, which leads to collinearity with unit dummies. A number of pertinent studies are reviewed to illustrate how two slow-moving variables, percent black and percent unemployed, have behaved inconsistently. A fixed effects vector decomposition procedure [Plumper, V., Troeger, V. E., 2007. Efficient estimation of time-invariant and rarely changing variables in finite sample panel analyses with unit fixed effects. Political Analysis, 15, 124-139.] is used to illustrate how these variables' coefficients appear positive and significant when the slow-moving process is accounted for.

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  • Authors

    Worrall JL

    Institution

    Criminology Program, The University of Texas at Dallas, 800 West Campbell Road, Richardson, TX 75080-3021, USA. worrall@utdallas.edu

    Source

    Social science research 37:3 2008 Sep pg 787-800

    MeSH

    California
    Continental Population Groups
    Crime
    Humans
    Models, Statistical
    Monte Carlo Method
    Research Design
    Unemployment

    Pub Type(s)

    Journal Article

    Language

    eng

    PubMed ID

    19086115