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We develop a two-period overlapping generation model where, in the first period, children
are socialized to either an honest or dishonest trait with respect to criminality while, in the
second period, when adults, they have to decide whether or not committing crime. The
latter affects whether or not a single-mother or a biparental family is formed, which has a
key impact on the transmission of the honest trait. We analyze the impact of the structure
of the family on criminal behaviors and socialization patterns. We show that the steady-
state fraction of honest individuals and crime rates depends on the interplay between the
deterrence effect, since an increase in the probability of being caught reduces crime, and the
social disorganization effect, since an increase in incarceration disrupts the family structure,
which has a negative impact of the transmission of the honest trait. We are also able to
explain the emergence of criminal gangs and the existence and persistence of neighborhoods
characterized by high crime rates and a large fraction of single-mother families.
