Leaders in Juvenile Crime

• DOI: 10.2139/ssrn.4114339
• Publication Date: 2022-05-28T12:21:49Z
• Authors: Carlos Díaz; Eleonora Patacchini; Thierry Verdier; Yves Zenou
• Keywords: 330; K42; social distance; Crime leaders; crime leaders; closeness centrality; Social distance; 0502 economics and business; JEL: K - Law and Economics/K.K4 - Legal Procedure, the Legal System, and Illegal Behavior/K.K4.K42 - Illegal Behavior and the Enforcement of Law; and Uncertainty/D.D8.D85 - Network Formation and Analysis: Theory; Criminal decisions; [SHS.ECO] Humanities and Social Sciences/Economics and Finance; C31; the Legal System; ddc:330; JEL: K - Law and Economics/K.K4 - Legal Procedure; 4. Education; 05 social sciences; [SHS.ECO]Humanities and Social Sciences/Economics and Finance; 16. Peace & justice; JEL: D - Microeconomics/D.D8 - Information; CRIME LEADERS, SOCIAL DISTANCE, CRIMINAL DECISIONS, CLOSENESS CENTRALITY; Knowledge; JEL: C - Mathematical and Quantitative Methods/C.C3 - Multiple or Simultaneous Equation Models • Multiple Variables/C.C3.C31 - Cross-Sectional Models • Spatial Models • Treatment Effect Models • Quantile Regressions • Social Interaction Models; JEL: D - Microeconomics/D.D8 - Information, Knowledge, and Uncertainty/D.D8.D85 - Network Formation and Analysis: Theory; and Illegal Behavior/K.K4.K42 - Illegal Behavior and the Enforcement of Law; criminal decisions; Closeness centrality; D85

This paper presents a new theory of crime where leaders transmit technology and act as role model for other criminals. We show that, in equilibrium, an individual's effort criminal decisions depend on the geodesic distance to leader his or her network social contacts. By using data friendship networks among U.S. high-school students, we structurally estimate find evidence supporting its predictions. In particular, by definition that is exogenous formation links, longer leader, lower activity delinquents less likely they are become finally perform counterfactual experiment reveals policy removes all from school can, average, reduce about 20% individual probability becoming 10%.