Abstract
The Indonesian economy indicates good performance but it is not followed by the decrease in crime rates. The aim of research is to find out and analyze the effects of unemployment, education, wages, and case completion rates on the crime rates in Indonesia in 2012 – 2016. This research uses the panel data using the Fixed Effect Model (FEM) with Generalized Least Square (GLS) method. The data used in this research is the secondary data collected from the Central Bureau of Statistics and the Indonesian National Police since 2012 until 2016. The data includes the open unemployment rate, the school enrollment rates, the provincial minimum wages, the crime rates, and the case completion rates. The result of this research indicates that the variables of unemployment, education and case completion rates insignificantly affect on the criminal crime in Indonesia. The wages have negative and significant effect on the crime rates in Indonesia.
Highlights
Crime may occur any time and brings bad effects on the economy or social activities
The results show that crime has increased in various types of crime, such as increased theft, drug sales and violent crime
The aim of this research is to find out the effects of unemployment, education, income, and case completion rate on the crime rate in Indonesia in 2012-2016
Summary
Crime may occur any time and brings bad effects on the economy or social activities. People opposed and tried to eliminate criminal acts because criminal acts create unrest in the community where people no longer carry out their activities. Organized crime uses political violence to influence politics in all over the world (Daniele and Marani, 2017). Organized crime is very detrimental to investment and business activities (Ashby and Ramos, 2013). Business support policies to foster employment and productivity (Barone and Narciso, 2011). Crimes and violence imply people’s welfare, such as a decrease in quality and quantity of life, including the increase in the government or private spending to prevent from crime actions. The other impacts are as follows: it is potential to damage the economy growth, to decrease the productivity, and to obstruct the planning (Soares, 2015)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
