U.S. crime rates have dramatically rose over the past few decades. Crime rates are the factor of many variables but perhaps the most interesting is the unemployment rate.

Given the steady relationship of crime rates and the unpredictable rate of unemployment, the following paper outlines the correlation post-recession. Factors potentially affecting the increase in the crime rate are those of high unemployment, the population of a particular city or town and police force – reducing crimes is potentially dependent on the police force.
Question: To what extent does the state unemployment rate affect the state crime rate?Brief
The following research take a closer look at what factors increase and decrease crime rates in the U.S. Crime rates per capita in the U.S. are significantly higher than some other developed countries which begs the questions as to why. From the percent of the population that is incarcerated to the degree of crime committed, the U.S. sets itself from its cohort, especially states within. Using economic theory we are able to establish underlying principles and assumptions to draw conclusions from an array of data. Specifically, using the economic theory of Marginal Benefit/Marginal Cost we will test to see if other economic factors increase and/or decrease the perceived value of individual decisions. Deriving a model to capture the relationship between crime rates and correlating factors, we determined the unemployment rate, income, and population size to be relevant variables to control for; unemployment rate being the main independent variable. A cross-sectional regression will be conducted on all 50 U.S states for the year of 2010. For future research, a panel regression must be conducted to illustrate the relationship across all states over time.

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