OLS may understate the effect of unemployment on crime because of the endogeneity problem (Raphael and Winter-Ember 2001). In this paper, we use changes in the real exchange rate, state manufacturing sector percentages, and state union membership rates as novel instrumental variables to carry out 2SLS estimations. We find a one-percentage-point…

The paper illustrates both theoretically and empirically that being married and having children have opposite effects on the wage rates of husbands and wives, and further that these diverging wage patterns are perpetuated over the length of the marriage. (Author)