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Formal Employment and Organized Crime: Regression Discontinuity Evidence from Colombia / Gaurav Khanna, Carlos Medina, Anant Nyshadham, Jorge A. Tamayo.
- Format:
- Book
- Author/Creator:
- Khanna, Gaurav.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w26203.
- NBER working paper series no. w26203
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Formal Employment and Organized Crime
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2019.
- Summary:
- Canonical models of crime emphasize economic incentives. Yet, causal evidence of sorting into criminal occupations in response to individual-level variation in incentives is limited. We link administrative socioeconomic microdata with the universe of arrests in Medellín over a decade. We exploit exogenous variation in formal-sector employment around a socioeconomic-score cutoff, below which individuals receive benefits if not formally employed, to test whether a higher cost to formal-sector employment induces crime. Regression discontinuity estimates show this policy generated reductions in formal-sector employment and a corresponding spike in organized crime, but no effects on crimes of impulse or opportunity.
- Notes:
- Print version record
- August 2019.
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