Labor Force Participation and Juvenile Delinquency in Taiwan: A Time Series Analyses

Abstract

This study examines the null hypothesis of Granger no-causality between labor force participation (LFP) and juvenile delinquency in Taiwan. In order to explore this issue more thoroughly, this study adopts the approach proposed by Toda and Yamamoto (1995, Journal of Econometrics, 66(1–2), 225–250). It uses official time-series data provided by the Government of Taiwan. After estimating both a four- and five-variable VAR system, one that substitutes both male and female LFP rates for the aggregate LFP rate, the primary findings of this study reveal the following: The higher the past juvenile crime rate, the lower the future aggregate and female LFP rate will be. In addition, the higher the past male LFP rate, the higher the future juvenile crime rate will be. These findings are quite robust in terms of different lag-length structures.