Organized Crime and Economic Growth: Evidence from Municipalities Infiltrated by the Mafia /
Fenizia, Alessandra.
Organized Crime and Economic Growth: Evidence from Municipalities Infiltrated by the Mafia / Alessandra Fenizia, Raffaele Saggio. - Cambridge, Mass. National Bureau of Economic Research 2023. - 1 online resource: illustrations (black and white); - NBER working paper series no. w32002 . - Working Paper Series (National Bureau of Economic Research) no. w32002. .
December 2023.
This paper studies the long-run economic impact of dismissing city councils infiltrated by organized crime. Applying a matched difference-in-differences design to the universe of Italian social security records, we find that city council dismissals (CCDs) increase employment, the number of firms, and industrial real estate prices. The effects are concentrated in Mafia-dominated sectors and in municipalities where fewer incumbents are re-elected. The dismissals generate large economic returns by weakening the Mafia and fostering trust in local institutions. The analysis suggests that CCDs represent an effective intervention for establishing legitimacy and spurring economic activity in areas dominated by organized crime.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
National Government Expenditures and Related Policies
Labor Economics Policies
General
Organized Crime and Economic Growth: Evidence from Municipalities Infiltrated by the Mafia / Alessandra Fenizia, Raffaele Saggio. - Cambridge, Mass. National Bureau of Economic Research 2023. - 1 online resource: illustrations (black and white); - NBER working paper series no. w32002 . - Working Paper Series (National Bureau of Economic Research) no. w32002. .
December 2023.
This paper studies the long-run economic impact of dismissing city councils infiltrated by organized crime. Applying a matched difference-in-differences design to the universe of Italian social security records, we find that city council dismissals (CCDs) increase employment, the number of firms, and industrial real estate prices. The effects are concentrated in Mafia-dominated sectors and in municipalities where fewer incumbents are re-elected. The dismissals generate large economic returns by weakening the Mafia and fostering trust in local institutions. The analysis suggests that CCDs represent an effective intervention for establishing legitimacy and spurring economic activity in areas dominated by organized crime.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
National Government Expenditures and Related Policies
Labor Economics Policies
General