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The impact of economic opportunity on criminal behavior: Evidence from the fracking boom

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  • Street, Brittany

Abstract

Theory suggests crime should decrease as economic opportunities increase the returns to legal activities. However, the current literature shows crime increases when areas experience fracking, a source of increased local economic opportunity. This paper reconciles this puzzle by separating out existing residents and isolating local economic effects from changing composition. Specifically, I exploit within- and across-county variation in fracking activities in North Dakota using individual-level data on incumbent residents, mineral lease records, and criminal charges. The results rule out increases in crime for these existing residents and suggest a modest decrease. These results are consistent with theory and in contrast to the observed aggregate increases in crime from fracking, highlighting the importance of compositional changes.

Suggested Citation

  • Street, Brittany, 2025. "The impact of economic opportunity on criminal behavior: Evidence from the fracking boom," Journal of Public Economics, Elsevier, vol. 248(C).
    • Handle: RePEc:eee:pubeco:v:248:y:2025:i:c:s0047272725001008
    DOI: 10.1016/j.jpubeco.2025.105402
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    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household

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