The study developed a framework for empirical analysis drawing on theories from criminology and economics. The primary goal was to obtain estimates using an analytical framework that distinguished the direct effect of unemployment of crime from the correlation between unemployment and crime attributable to factors that jointly determined the two variables. Findings did not support the hypothesis that increases in unemployment were related to increases in crime. Evidence suggested increases in labor force participation were related to increases in aggregate crime rates and minor thefts. Other factors were stronger predictors of crime rates, including the proportion of the population in the 15- to 29-year old age group, the divorce rate, and the percentage of illegitimate births. 52 references, 19 endnotes, and 2 tables