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Organized Crime, Migration and Human Capital Formation: Evidence from the South of Italy

Listed author(s):
  • Nicola Daniele Coniglio

    ()

    (University of Bari)

  • Giuseppe Celi

    (University of Foggia)

  • Cosimo Scagliusi

    (University of Bari)

The presence of organized crime is a pervasive feature of many developed and developing countries. Even if ‘mafia’ organizations have greatly enlarged the geographical scope of their activities, as in the past they are still deeply rooted in specific territories where their presence generates a host of influences on socio-economic performances (perverse social capital). In this paper we analyse the consequences of the presence of organized crime on the long-term accumulation of human capital, a key determinant of economic growth. To do this we build a unique dataset where - among other information - we identify municipalities where the presence of organized crime is particularly pervasive in an Italian region, Calabria, where is based one of the most powerful international criminal organization, 'Ndrangheta. Our results suggest that the presence of organized crime inhibits the accumulation of human capital both directly (reducing the incentive to invest in formal education) and indirectly by increasing migration outflows.

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File URL: http://www.seriesworkingpapers.it/RePEc/bai/series/Economia-Series28.pdf
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Paper provided by Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro" in its series SERIES with number 0028.

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Length: 2354
Date of creation: Mar 2010
Date of revision: Mar 2010
Handle: RePEc:bai:series:economia-series28
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Web page: http://www.uniba.it/ricerca/dipartimenti/dse

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  1. Blanchflower, David G. & Freeman, Richard B. (ed.), 2000. "Youth Employment and Joblessness in Advanced Countries," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226056586.
  2. Giovanni Peri, 2004. "Social Variables and Economics Success: The Case of Italian Industrial Development," Working Papers 42, University of California, Davis, Department of Economics.
  3. Steven D. Levitt, 2004. "Understanding Why Crime Fell in the 1990s: Four Factors that Explain the Decline and Six that Do Not," Journal of Economic Perspectives, American Economic Association, vol. 18(1), pages 163-190, Winter.
  4. Richard B. Freeman, 1996. "Why Do So Many Young American Men Commit Crimes and What Might We Do about It?," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 25-42, Winter.
  5. David G. Blanchflower & Richard B. Freeman, 2000. "Youth Employment and Joblessness in Advanced Countries," NBER Books, National Bureau of Economic Research, Inc, number blan00-1, Enero-Jun.
  6. Vittorio, Daniele & Ugo, Marani, 2008. "Organized Crime and Foreign Direct Investment: the Italian Case," MPRA Paper 7217, University Library of Munich, Germany.
  7. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-338, May.
  8. 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.
  9. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
  10. Lance Lochner & Enrico Moretti, 2004. "The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports," American Economic Review, American Economic Association, vol. 94(1), pages 155-189, March.
  11. repec:hrv:faseco:30726298 is not listed on IDEAS
  12. Acemoglu, Daron, 1995. "Reward structures and the allocation of talent," European Economic Review, Elsevier, vol. 39(1), pages 17-33, January.
  13. Gary S. Becker & Casey B. Mulligan, 1997. "The Endogenous Determination of Time Preference," The Quarterly Journal of Economics, Oxford University Press, vol. 112(3), pages 729-758.
  14. Peri Giovanni, 2004. "Socio-Cultural Variables and Economic Success: Evidence from Italian Provinces 1951-1991," The B.E. Journal of Macroeconomics, De Gruyter, vol. 4(1), pages 1-36, September.
  15. 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.
  16. Gary S. Becker & George J. Stigler, 1974. "Law Enforcement, Malfeasance, and Compensation of Enforcers," The Journal of Legal Studies, University of Chicago Press, vol. 3(1), pages 1-18, January.
  17. Mirko Draca & Stephen Machin, 2015. "Crime and Economic Incentives," Annual Review of Economics, Annual Reviews, vol. 7(1), pages 389-408, August.
  18. Borjas, George J. & Bronars, Stephen G. & Trejo, Stephen J., 1992. "Self-selection and internal migration in the United States," Journal of Urban Economics, Elsevier, vol. 32(2), pages 159-185, September.
  19. Papagapitos, Agapitos & Riley, Robert, 2009. "Social trust and human capital formation," Economics Letters, Elsevier, vol. 102(3), pages 158-160, March.
  20. Richard Freeman & David G. Blanchflower, 2000. "Introduction to "Youth Employment and Joblessness in Advanced Countries"," NBER Chapters,in: Youth Employment and Joblessness in Advanced Countries, pages 1-16 National Bureau of Economic Research, Inc.
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