Development, Crime, and Punishment: Accounting for the International Differences in Crime Rates

This paper analyzes the determinants of the heterogeneity in crime rates across countries,

focusing on reporting rates and development. The behavior of the reporting rate is studied by

comparing data from victimization surveys to official records. Reporting rates are strongly

correlated with development: richer countries report a higher fraction of crimes. The positive

relation between development and crime found in previous studies is shown to result from this

correlation. Once the presence of the reporting error is accounted for, development does not affect

crime. Reductions in inequality and increases in growth and education are associated with

reductions in crime rates.