IDEAS home Printed from https://ideas.repec.org/a/vrs/izajlp/v10y2020i1p18n15.html
   My bibliography  Save this article

The Effect of Remittances on Crime in India

Author

Listed:
  • Mahesh Malvika

    (Centre for International Trade and Development (CITD), Jawaharlal Nehru University, Delhi110067, India)

Abstract

There is a well-established literature that finds a strong causal association between remittance flows and economic growth and poverty. Owing to the poverty-alleviating and income-generating effects of remittances, it may theoretically reduce crime by increasing the opportunity cost of committing crime. This paper studies the effects of remittance receipts on crime outcomes in India. The identification strategy, exploits the variation in rainfall as an instrument for remittance receipts. The results suggest that remittance receipts have a negative effect on violent crimes and a positive effect on nonviolent crimes. Since remittance flows mean that more economic resources are available, remittances provide an incentive for certain crimes that thrive in the presence of economic resources. Therefore, an important implication of this result is that as remittance receipts increase income and welfare, there is a diverse effect on the costs and benefits of different types of crimes. It may result in unfavorable outcomes in the form of increases in certain nonviolent crimes.

Suggested Citation

  • Mahesh Malvika, 2020. "The Effect of Remittances on Crime in India," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-18, March.
    • Handle: RePEc:vrs:izajlp:v:10:y:2020:i:1:p:18:n:15
    DOI: 10.2478/izajolp-2020-0001
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/izajolp-2020-0001
    Download Restriction: no
    File URL: https://libkey.io/10.2478/izajolp-2020-0001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    2. Sarsons, Heather, 2015. "Rainfall and conflict: A cautionary tale," Journal of Development Economics, Elsevier, vol. 115(C), pages 62-72.
    3. Adams, Richard Jr. & Page, John, 2005. "Do international migration and remittances reduce poverty in developing countries?," World Development, Elsevier, vol. 33(10), pages 1645-1669, October.
    4. Dean Yang, 2008. "International Migration, Remittances and Household Investment: Evidence from Philippine Migrants’ Exchange Rate Shocks," Economic Journal, Royal Economic Society, vol. 118(528), pages 591-630, April.
    5. Christian Traxler & Carsten Burhop, 2010. "Poverty and crime in 19th century Germany: A reassessment," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2010_35, Max Planck Institute for Research on Collective Goods.
    6. Mehlum, Halvor & Miguel, Edward & Torvik, Ragnar, 2006. "Poverty and crime in 19th century Germany," Journal of Urban Economics, Elsevier, vol. 59(3), pages 370-388, May.
    7. David S. Blakeslee & Ram Fishman, 2018. "Weather Shocks, Agriculture, and Crime: Evidence from India," Journal of Human Resources, University of Wisconsin Press, vol. 53(3), pages 750-782.
    8. Lakshmi Iyer & Petia Topalova, 2014. "Poverty and Crime: Evidence from Rainfall and Trade Shocks in India," Harvard Business School Working Papers 14-067, Harvard Business School, revised Aug 2014.
    9. Vincent Bignon & Eve Caroli & Roberto Galbiati, 2017. "Stealing to Survive? Crime and Income Shocks in Nineteenth Century France," Economic Journal, Royal Economic Society, vol. 127(599), pages 19-49, February.
    10. Lance Lochner, 2004. "Education, Work, And Crime: A Human Capital Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 811-843, August.
    11. Vincent Bignon & Eve Caroli & Roberto Galbiati, 2017. "Stealing to Survive? Crime and Income Shocks in Nineteenth Century France," Economic Journal, Royal Economic Society, vol. 127(599), pages 19-49, February.
    12. Acosta, Pablo & Calderon, Cesar & Fajnzylber, Pablo & Lopez, Humberto, 2008. "What is the Impact of International Remittances on Poverty and Inequality in Latin America?," World Development, Elsevier, vol. 36(1), pages 89-114, January.
    13. Gupta, Sanjeev & Pattillo, Catherine A. & Wagh, Smita, 2009. "Effect of Remittances on Poverty and Financial Development in Sub-Saharan Africa," World Development, Elsevier, vol. 37(1), pages 104-115, January.
    14. Carlos Vargas-Silva, 2009. "Crime and Remittance Transfers," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 35(2), pages 232-247.
    15. Morgan Kelly, 2000. "Inequality And Crime," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 530-539, November.
    16. Ming-Jen Lin, 2008. "Does Unemployment Increase Crime?: Evidence from U.S. Data 1974–2000," Journal of Human Resources, University of Wisconsin Press, vol. 43(2), pages 413-436.
    17. HwaJung Choi, 2007. "Are Remittances Insurance? Evidence from Rainfall Shocks in the Philippines," The World Bank Economic Review, World Bank, vol. 21(2), pages 219-248, May.
    18. Basanta K Pradhan & Malvika Mahesh, 2016. "Impact of remittances on poverty: an analysis of data from a set of developing countries," Economics Bulletin, AccessEcon, vol. 36(1), pages 108-117.
    19. Steve Brito & Ana Corbacho & Rene Osorio Rivas, 2014. "Remittances and the Impact on Crime in Mexico," IDB Publications (Working Papers) 85093, Inter-American Development Bank.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Corvalan, Alejandro & Pazzona, Matteo, 2019. "Persistent commodity shocks and transitory crime effects," Journal of Economic Behavior & Organization, Elsevier, vol. 158(C), pages 110-127.
    2. Ishak, Phoebe W., 2022. "Murder nature: Weather and violent crime in rural Brazil," World Development, Elsevier, vol. 157(C).
    3. Ishak, Phoebe W., 2021. "Murder nature weather and violent crime in Brazil," Discussion Papers 2021/2, Free University Berlin, School of Business & Economics.
    4. Chambru, Cédric, 2020. "Weather shocks, poverty and crime in 18th-century Savoy," Explorations in Economic History, Elsevier, vol. 78(C).
    5. Masahiro Shoji, 2018. "Religious Fractionalisation and Crimes in Disaster-Affected Communities: Survey Evidence from Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 54(10), pages 1891-1911, October.
    6. Steve Brito & Ana Corbacho & Rene Osorio Rivas, 2014. "Remittances and the Impact on Crime in Mexico," IDB Publications (Working Papers) 85093, Inter-American Development Bank.
    7. Stefan Oliver Houpt & Juan Carlos Rojo Cagigal, 2014. "Relative deprivation and labour conflict during Spain’s industrialization: the Bilbao estuary, 1914–1936," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 8(3), pages 335-369, September.
    8. Fone, Zachary S. & Friedson, Andrew I. & Lipton, Brandy & Sabia, Joseph J., 2020. "The Dependent Coverage Mandate Took a Bite Out of Crime," IZA Discussion Papers 12968, Institute of Labor Economics (IZA).
    9. Kostadis J. Papaioannou, 2017. "“Hunger makes a thief of any man”: Poverty and crime in British colonial Asia," European Review of Economic History, European Historical Economics Society, vol. 21(1), pages 1-28.
    10. Flückiger, Matthias & Ludwig, Markus, 2015. "Economic shocks in the fisheries sector and maritime piracy," Journal of Development Economics, Elsevier, vol. 114(C), pages 107-125.
    11. Altindag, Duha T., 2012. "Crime and unemployment: Evidence from Europe," International Review of Law and Economics, Elsevier, vol. 32(1), pages 145-157.
    12. Beine, Michel & Lodigiani, Elisabetta & Vermeulen, Robert, 2012. "Remittances and financial openness," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 844-857.
    13. Bignon, Vincent & Caroli, Eve & Galbiati, Roberto, 2011. "Stealing to Survive: Crime and Income Shocks in 19th Century France," CEPREMAP Working Papers (Docweb) 1111, CEPREMAP, revised Feb 2013.
    14. Satadru Das & Naci Mocan, 2020. "Analyzing The Impact Of The World'S Largest Public Works Project On Crime," Economic Inquiry, Western Economic Association International, vol. 58(3), pages 1167-1182, July.
    15. Deiana, C, 2016. "Local Labour Market Effects of Unemployment on Crime Induced by Trade Shocks," Economics Discussion Papers 16529, University of Essex, Department of Economics.
    16. Alexandra T Tapsoba & Pascale Combes Motel & Jean-Louis Combes, 2019. "Remittances, food security and climate variability: The case of Burkina Faso," CERDI Working papers halshs-02364775, HAL.
    17. 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.
    18. Yu Aoki & Theodore Koutmeridis, 2019. "Shaking Criminal Incentives," Working Papers 2019-13, Business School - Economics, University of Glasgow.
    19. Amedeo Argentiero & Bruno Chiarini & Elisabetta Marzano, 2020. "Does Tax Evasion Affect Economic Crime?," Fiscal Studies, John Wiley & Sons, vol. 41(2), pages 441-482, June.
    20. Anna Bindler & Randi Hjalmarsson, 2021. "The Impact of the First Professional Police Forces on Crime [State Capacity and Economic Development: A Network Approach]," Journal of the European Economic Association, European Economic Association, vol. 19(6), pages 3063-3103.

    More about this item

    Keywords

    crime; remittance receipts; income;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:izajlp:v:10:y:2020:i:1:p:18:n:15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.