The intricate connection between income inequality and crime rates has long perplexed economists, politicians, and society at large. In our forthcoming research, we aim to elucidate, analyze, and scrutinize the variables at play in this complex issue. Subsequently, we will evaluate the hypothesis positing a correlation between them, utilizing data drawn from various countries.
In this pursuit, we have selected murder rates and theft rates as proxies for crime rates, and we have explored their relationship with the Gini coefficient—a measure of income inequality—across the years 2003 to 2020. To ensure robust findings, we have incorporated additional control variables, including education levels, urbanization rates, gross national income per capita, and economic growth. Finally, employing Stata software, we have constructed a multivariable regression model to address this multifaceted problem.
The results derived from our research indicate a general positive relationship between income inequality and crime when considering the data as a panel. However, it is worth noting that this relationship may exhibit variations in different countries.
You can find the results and step-by-step explanations for this research project in the .pdf file. We've also included the code, along with complete documentation and line-by-line explanations for your further review.