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Conditional Cash Transfers and Crime: Higher Income but also Better Loot

Author

Listed:
  • Fernando Borraz

    (Facultad de Ciencias Sociales-Universidad de la República and Universidad de Montevideo)

  • Ignacio Munyo

    (IEEM - Universidad de Montevideo)

Abstract

We quantify the effect of conditional cash transfer programs on crime. We find a positive correlation between welfare payments in cash significantly and criminal activities. We exploit the exogenous increase in the payment and the number of beneficiaries given by a major reformulation of the CCT program in Uruguay. The increase in crime is exclusively observed in property crime suggesting the impact is driven by economic reasons. Our findings suggest that an increase in cash available on the streets improves the loot from crime and thus increases the incentive for illegal activities.

Suggested Citation

  • Fernando Borraz & Ignacio Munyo, 2020. "Conditional Cash Transfers and Crime: Higher Income but also Better Loot," Economics Bulletin, AccessEcon, vol. 40(2), pages 1804-1813.
  • Handle: RePEc:ebl:ecbull:eb-20-00371
    as

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    References listed on IDEAS

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    Cited by:

    1. Brett Watson & Mouhcine Guettabi & Matthew Reimer, 2020. "Universal Cash and Crime," The Review of Economics and Statistics, MIT Press, vol. 102(4), pages 678-689, October.

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    More about this item

    Keywords

    Conditional cash transfers; crime; income effect; loot;
    All these keywords.

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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