Question

Using the Rational Criminal Model, explain the likely effects on crime rates when a major employer leaves an area, reducing the wage that workers can expect to receive for work.

Answer 1

The Rationale Criminal Model:- Becker's rational criminal model (RCM) explains that a criminal choice to commit a crime is a rational one contrasting the profits of the crime with the uncertain outcome of success or jail.
The model observes the crime like an investment; take a risk, get high expected return; play it safe, get a low expected return.
The rational criminal model explains that the rational offender faces the Individuals makes a rational possibility between legitimate work or committing crime.
Decision to commite a crime is given by,
(b-pc)>0 or marginal revenue greater than marginal cost.
b= benefits of crime
p= probability of punishment
c= cost of punishment

So when a major employer leaves an area, reducing the wage that workers can expect to receive for work, the crime rates will increase because the workers will get more benefits after committing crime rather than working.
So if the government wants to reduce the crime rates, it should decrese the 'b' benefits of crime or increase the 'p' and 'c' probability of punishment or cost of punishment.