Freak Readers, It is my distinct pleasure to introduce Maxine Doogan, from the Erotic Service Providers Union. I won’t offer a lengthy introduction —I’d embarrass Maxine! — because her words below say it all. Maxine has taught me a lot about prostitution and the sex trade in general. She has been instrumental in helping me craft my own research. Together, we hope to launch the first multi-city comprehensive research study of the sex economy. In a subsequent post, I’ll ask you for some feedback on that project. For now, I want to share her insights about the sex economy today.
Q. Our readers might be interested in understanding exactly what you are seeking that might improve the economic conditions of sex workers? By the way, how you do you define “sex worker”?
A. To improve one’s economics is to improve their lives and the larger communities. Read More »
Our latest Freakonomics Radio podcast is called “Women Are Not Men.” (You can subscribe at iTunes, get the RSS feed, or listen via the media player above. You can also read the transcript below; it includes credits for the music you’ll hear in the episode.)
As Stephen Dubner says:
DUBNER: Equality of the sexes has long been a goal, and in many ways that goal is being met. But, as you’ll hear on this program, the variance between men and women on some dimensions is still large. … We’re not trying to start any arguments. We’re just trying to look at the data that show differences between men and women to figure out why those differences exist, and how meaningful they are.
The first story you’ll hear is about the gender gap among editors of the world’s biggest encyclopedia. Bourree Lam (the editor of this blog) looks at why only 16% of Wikipedia’s editors are female — which is puzzling in that women outnumber men on Facebook, Twitter, Pinterest, and even in online games.
Next, you’ll hear about female-male differences in competition. Economist Uri Gneezy and a group of researchers got to study competition in the Masai tribe in Tanzania (which is extremely patriarchal) and the Khasi tribe in India (one of the world’s few matrilineal societies). When it comes to competition, Gneezy says, nurture is key: Read More »
A new working paper (gated) from Decio Coviello and Nicola Persico:
We analyze data on NYPD’s “stop and frisk program” in an effort to identify racial bias on the part of the police officers making the stops. We find that the officers are not biased against African Americans relative to whites, because the latter are being stopped despite being a “less productive stop” for a police officer.
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New York City’s stop-and-frisk program disproportionally impacts minorities. The New York Civil Liberties Union makes this point forcefully by documenting that, in 2011, 52.9 percent of stops were of blacks, 33.7 percent were of Latinos, while whites accounted for only 9.3 percent of the stops. This disparate impact is unfortunate, but should not be surprising if we believe that crime and therefore policing are disproportionally concentrated in minority-rich neighborhoods.
However, mere disparate impact is not the same as impermissible behavior. Discrimination law in the United States generally does not prohibit disparate impact, as long as it does not reflect an intent to discriminate. Therefore, if one is interested in impermissible behavior, it is helpful to have an empirical strategy which goes beyond merely documenting disparate impact, and can detect racial animus on the part of the police.
Our latest Freakonomics Radio podcast is called “How to Think About Guns.” (You can download/subscribe at iTunes, get the RSS feed, or listen via the media player in the post. You can also read the transcript below; it includes credits for the music you’ll hear in the episode.)
This episode is a straightforward conversation between Stephen Dubner and Steve Levitt, keeping in mind recent events like the Newtown, Ct., school massacre and long-standing traditions like the American embrace of guns.
Levitt has focused much of his academic career on crime research, including all sorts of gun policies that do and do not prevent violence. He has also analyzed the relationship between the economy and the crime rate, whether increased police presence affects crime, and whether deterrents like capital punishment and sentence enhancements actually work. Read More »
The next time your bank or credit-card company frantically calls and texts and e-mails you (all at the same time) to say it has noticed “suspicious activity” on your account — like buying gas in a ZIP code a bit poorer than your own — and says it has suspended your account “for your protection,” tell them to read this paper, by Dinei Florencio and Cormac Herley of Microsoft Research. A key passage:
We show that, in spite of appearances, password-stealing is a bad business proposition. … It is worth, at the outset, dispelling a widely-held misapprehension about password-stealing. Thieves certainly steal passwords, and money is certainly a large part of their motivation, but when they successfully extract money from financial accounts individual consumers do not pay. In the US, Regulation E of the Federal Reserve limits consumer liability, in the event of fraud, to $50 (this is separate from the $50 limit for credit-card fraud, Regulation CC) and covers “any electronic transfer that is initiated through an electronic terminal, telephone, computer or magnetic tape.” In the US banks, brokerages, and credit unions are governed by this regulation and most go beyond it and offer a zero liability policy to consumers.
(HT: Peter Baehr)
Official statistics would certainly suggest that crime in China is extremely low. Murder rates in China are roughly one-fifth as high as in the United States. According to the official crime statistics there, all crimes are rare. China certainly feels safe. We walked the streets in rich areas and poor and not for a moment did I ever feel threatened. Graffiti was completely absent. The one instance where I thought I finally found some graffiti near a train station in the city of Shangrao, the spray painted message on a bridge turned out not to be graffiti, but rather a government warning that anyone caught defecating under the bridge would be severely punished.
Yet, there were all sorts of odd behaviors that made it seem like some crimes were a big problem.
First, there seemed to be an obsession with the risk of counterfeit money. Our tour guides felt the need to teach us how to identify fake money. Whenever I bought something with currency, the shopkeeper went through a variety of tricks to validate the legitimacy of the bills. Read More »
A working paper by Sergio Beraldo, Raul Caruso, and Gilberto Turati looks at time preferences and their relation to crime over a five-year period in Italy. Using proxies for patience (some of which may strike some people as rather far-fetched), they found more crimes in areas where residents are more impatient and discount the future more:
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In this paper we propose a first empirical test on the relationship between time preferences and crime using as a sample the whole set of Italian regions observed over the period 2002-2007. We consider both property and violent crimes. We proxy time preferences employing: 1) the amount of short-term debt to finance consumption (the consumer credit share); 2) the prevalence of obese people according to their body mass index (obesity); 3) 5 the willingness of individuals to engage in stable relationships (the marriage rate). In line with the theoretical prediction by Davis (1988), we find that where people are more impatient and discount the future more heavily, property and violent crimes are higher. In particular, the correlation between crime rates and time preferences is especially robust when time preferences are proxied both by the obesity and the marriage rates.
The last three months have seen several large corporate fines levied in response to various high-profile financial scandals, but an article in The Economist asks if fines are still not high enough to actually deter crime:
The economics of crime prevention starts with a depressing assumption: executives simply weigh up all their options, including the illegal ones. Given a risk-free opportunity to mis-sell a product, or form a cartel, they will grab it. Most businesspeople are not this calculating, of course, but the assumption of harsh rationality is a useful way to work out how to deter rule-breakers.
Extremely high and extremely low fines both carry costs, so The Economist suggests a middle ground: fines that offset the benefits of the crime itself. Read More »