Code for: Job Loss, Credit and Crime in Colombia
- Khanna, Gaurav (University of California-San Diego)
- Medina, Carlos (Banco de la Republica de Colombia)
- Posso, Christian (Banco de la Republica de Colombia)
- Nyshadham, Anant (University of Michigan)
- Tamayo, Jorge (Harvard University. Harvard Business School)
AbstractWe investigate the effects of job displacement, as a result of mass-layoffs, on criminal arrests using a matched employer-employee-crime dataset from Medell\'in, Colombia. Job displacement leads to immediate and persistent earnings losses, and higher probability of arrest for both the displaced worker and family members. Leveraging a banking policy-reform, we find that greater access to credit attenuates the criminal response to job loss. Impacts on arrests are pronounced for property crimes and among younger men for whom opportunities in criminal enterprises are prevalent. Taken together, our results are consistent with economic incentives contributing to criminal participation decisions after job losses.
Is version of
Khanna, Gaurav, Carlos Medina, Anant Nyshadham, Christian Posso, and Jorge Tamayo. “Job Loss, Credit and Crime in Colombia.” American Economic Review: Insights, n.d.
Update Metadata: 2021-02-18 | Issue Number: 1 | Registration Date: 2021-02-18