Crime, Consumption, and Choice: On the Interchangeability of Licit and Illicit Income

Abstract

We examine the rational assumption of the interchangeability of legal and illegal monies. Drawing from economics, behavioral economics, and sociology we answer two main research questions: (1) Do offenders perceive money earned across various income-generating activities (legal vs. illegal) in the same way? (2) How do consumption patterns (spending and saving) differ across various forms of income-generating activities? We use an a priori mixed methods approach with two interrelated studies; a quantitative survey of incarcerated offenders (N  =  58) and a qualitative study of semi-structured interviews from four separate previous research projects (N  =  107). We find evidence for the existence of differential consumption patterns based on quantitative and qualitative data from both incarcerated and active offenders regarding their patterns of spending legal and illegal money. Our findings have implications for choice theories of crime, for public policy approaches to poverty, and crime prevention interventions.