Economic inequality and crime across cities in India: Evidence using nighttime lights data

This study investigates the relationship between economic inequality and crime rates across 49 Indian cities from 2016 to 2021. Given the limited availability of traditional economic indicators at the city level in India, we introduce a novel methodological approach using nighttime lights collected by the Suomi National Polar-orbiting Partnership (SNPP) Visible Infrared Imaging Radiometer Suite (VIIRS) satellites and its inequality as an alternative indicator for economic activity and economic inequality. Employing a dynamic panel data model, we demonstrate that inequality based on nighttime lights has a statistically significant positive impact on crime rates. Our findings reveal that a 1% increase in light-based inequality corresponds to a 0.5% increase in total crime rate. This relationship remains robust across multiple crime categories, including violent crime, minor property crime, and property crime. Furthermore, we observe that conviction rates have a significant negative impact on total crime rate, suggesting the deterrent effect of effective law enforcement. These results contribute to the growing literature on urban crime dynamics and offer insights on the use of remotely sensed nighttime lights for studying economic disparities in regions where conventional economic data may be limited.