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Social Variables and Economics Success: The Case of Italian Industrial Development

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  • Giovanni Peri

    (Department of Economics, University of California Davis)

Abstract

Italy makes for a very interesting case study of the impact of social variables on economic performance. Across its provinces, differences in social and cultural attitudes seem associated to large differences in economic development. We analyze the importance of some social variables on industrialization and on employment creation across 95 Italian provinces during the period 1951-1991. On one hand we find little evidence that civic involvement (Social Capital) was associated with industrial and economic development. On the other hand we find strong evidence that organized crime, measured as high murder rates, was negatively correlated with industrial and economic development. We use measures of murder rates in the distant past to suggest that the correlation captures, at least in part, a stable and possibly causal link between organized crime and lack of employment growth.

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Bibliographic Info

Paper provided by University of California, Davis, Department of Economics in its series Working Papers with number 42.

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Length: 39
Date of creation: 31 Mar 2004
Date of revision:
Handle: RePEc:cda:wpaper:04-2

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Related research

Keywords: Industrial Development; Regional Productivity; Italian Provinces; Civic Spirit; Murder Rates;

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  1. Eric D. Gould & Bruce A. Weinberg & David B. Mustard, 2002. "Crime Rates And Local Labor Market Opportunities In The United States: 1979-1997," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 45-61, February.
  2. Soares, Rodrigo R., 2004. "Development, crime and punishment: accounting for the international differences in crime rates," Journal of Development Economics, Elsevier, vol. 73(1), pages 155-184, February.
  3. Jonathan Temple & Paul A. Johnson, 1998. "Social Capability And Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 113(3), pages 965-990, August.
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