The impact of crime on local economies
Communities become economically unhealthy.
A relationship between poverty and crime also manifests itself in the effects that violence has on employment. Several studies have demonstrated that direct victimization is associated with more unemployment and less productivity at work.
- A study of violent trauma patients found a positive association between victimization and unemployment.
- Another study found that, following the homicide of a family member, employment went down 27% among surviving family members.
- In a sample of parents whose children had been murdered, more than 50% of the parents perceived themselves as nonproductive at their jobs in the four months after the murder.
High rates of violent crime don’t just impact victims. Rising crime has been negatively associated with business activity, resulting in downsizing and discouraging new businesses from entering the marketplace.
Neighborhoods then lose out on opportunities for jobs and affordable access to food, household items, and other essential goods and services.
One large analysis looked at the impact of gun violence on the economic health of neighborhoods in six cities: Baton Rouge, LA; Minneapolis, MN; Oakland, CA; Rochester, NY; San Francisco, CA; and Washington, DC. The findings were remarkably consistent. An increase in gun violence in a census tract reduced the growth rate of new retail and service establishments by 4% in Minneapolis, Oakland, San Francisco, and Washington, DC.
In Minneapolis, each additional gun homicide in a census tract in a given year was associated with 80 fewer jobs the next year; in Oakland, a gun homicide was associated with 10 fewer jobs the next year.