DOES EDUCATION REDUCE CRIME? ECONOMIC ANALYSIS ON A SAMPLE OF EUROPEAN COUNTRIES

Abstract

This is an analysis of an individual's economic behavior in relation to the benefits and risks of a potential crime. In theoretical terms, the paper relies on the postulates and contributions of Nobel laureate Gary Becker (1968; 1978). The main goal of the paper is to investigate the extent to which the level of education and the corresponding net income of the working population influence the change in the number of robberies. According to the initial hypothesis, the high level of education reduces the number of robberies. The sample in which the following countries were selected is analyzed: France, Italy, Germany, the Czech Republic, Hungary, Finland, Estonia, and Serbia. The criteria for selecting countries were EU membership, EU candidate status, and the country's geopolitical position. The econometric method was used in the research. Eurostat data on the net income of the working population, the share of the working population by level of education and robberies recorded offenses were used. After multiple regression analysis, in the case of the low educated population, speaking about the value of adjusted R², a set of two predictor variables explains 76.6% of the variability of robberies per 100K inhabitants. The jump of both independent variables affects the growth of robberies with the fact that in the case of the variable ‘share of low educated’ the jump of robberies is more pronounced. When it comes to the observed population with tertiary education, a set of two independent variables explains 68.2% of the variability of 'robberies per 100K inhabitants'. However, when the share of tertiary educated people jumps by one point, the variable 'robberies per 100K inhabitants' decreases by 1.110. The independent variable 'tertiary education' has a significant effect on deterring individuals from robbery, due to the assessment that in relation to the current situation, the consequences are more expensive and the benefits insufficient. Rational choice theory is at work. After assessing the punishment and the probability that they will be caught for the committed crime, highly educated people make the decision that their current social and material status is more attractive than the benefits of a potential robbery.