Consider the labor market for police officers. Police officer have preferences over their salary, amenities, and the characteristics of the municipality in which they serve. (a) One would reasonably expect that high-crime municipalities pay higher wages than low-crime municipalities. But suppose high-crime municipalities pay lower wages than low-crime municipalities. Why? (Assume the primary source of funding for police officers comes from tax revenues from within the municipality and that high-crime municipalities tend to generate less tax revenue than low-crime municipalities.) (b) Does your discussion suggest anything about the relation between high-crime municipality and the quality of police officers in those districts?
Consider the labor market for police officers. Police officer have preferences over their salary, amenities, and the characteristics of the municipality in which they serve.
(a) One would reasonably expect that high-crime municipalities pay higher wages than low-crime municipalities. But suppose high-crime municipalities pay lower wages than low-crime municipalities. Why? (Assume the primary source of funding for police officers comes from tax revenues from within the municipality and that high-crime municipalities tend to generate less tax revenue than low-crime municipalities.)
(b) Does your discussion suggest anything about the relation between high-crime municipality and the quality of police officers in those districts?
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