Criminality and Income Inequality in Indonesia

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 moment...

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Main Authors: Lilik Sugiharti, Miguel Angel Esquivias, Mohd Shahidan Shaari, Lussi Agustin, Hilda Rohmawati
Format: Article
Language:English
Published: MDPI AG 2022-03-01
Series:Social Sciences
Subjects:
Online Access:https://www.mdpi.com/2076-0760/11/3/142
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author Lilik Sugiharti
Miguel Angel Esquivias
Mohd Shahidan Shaari
Lussi Agustin
Hilda Rohmawati
author_facet Lilik Sugiharti
Miguel Angel Esquivias
Mohd Shahidan Shaari
Lussi Agustin
Hilda Rohmawati
author_sort Lilik Sugiharti
collection DOAJ
description 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.
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spelling doaj.art-1207db8897714f438ca044843002aec12023-11-30T22:23:06ZengMDPI AGSocial Sciences2076-07602022-03-0111314210.3390/socsci11030142Criminality and Income Inequality in IndonesiaLilik Sugiharti0Miguel Angel Esquivias1Mohd Shahidan Shaari2Lussi Agustin3Hilda Rohmawati4Faculty of Economics and Business, Airlangga University, Surabaya 60286, IndonesiaFaculty of Economics and Business, Airlangga University, Surabaya 60286, IndonesiaFaculty of Economics and Business, Airlangga University, Surabaya 60286, IndonesiaFaculty of Economics and Business, Airlangga University, Surabaya 60286, IndonesiaFaculty of Economics and Business, Airlangga University, Surabaya 60286, IndonesiaWe 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.https://www.mdpi.com/2076-0760/11/3/142crime ratewell-beingincome inequalityquality educationhuman developmentlife expectancy
spellingShingle Lilik Sugiharti
Miguel Angel Esquivias
Mohd Shahidan Shaari
Lussi Agustin
Hilda Rohmawati
Criminality and Income Inequality in Indonesia
Social Sciences
crime rate
well-being
income inequality
quality education
human development
life expectancy
title Criminality and Income Inequality in Indonesia
title_full Criminality and Income Inequality in Indonesia
title_fullStr Criminality and Income Inequality in Indonesia
title_full_unstemmed Criminality and Income Inequality in Indonesia
title_short Criminality and Income Inequality in Indonesia
title_sort criminality and income inequality in indonesia
topic crime rate
well-being
income inequality
quality education
human development
life expectancy
url https://www.mdpi.com/2076-0760/11/3/142
work_keys_str_mv AT liliksugiharti criminalityandincomeinequalityinindonesia
AT miguelangelesquivias criminalityandincomeinequalityinindonesia
AT mohdshahidanshaari criminalityandincomeinequalityinindonesia
AT lussiagustin criminalityandincomeinequalityinindonesia
AT hildarohmawati criminalityandincomeinequalityinindonesia