The Relationship Between Social Expenditure and Crime Rates: A Literature Review

Abstract

Social expenditure refers to public spending on unemployment, disability, pensions, education, and health with the aim of improving the level of social welfare. Crime, on the other hand, is defined as the whole of unlawful words and actions arising from various factors such as economic, social, psychological, familial causes, and oppositional attitudes toward public authority. One of the expected effects of social expenditures is to reduce crime rates by playing a deterrent role against crime. The aim of this study is to provide a general evaluation of the empirical literature on the relationship between social expenditures and crime. In the literature, there are studies finding that social expenditures reduce crime rates, as well as studies suggesting that they increase crime. In addition, some studies have found no significant relationship between social expenditures and crime rates. Studies examining the relationship between social expenditure and crime at the macro level generally focus on crime rates, whereas micro-level studies concentrate on individual deviant behavior and recidivism. A considerable number of existing studies have been conducted on the case of the United States. This study suggests that social expenditures should be increased.