Job Loss, Credit and Crime in Colombia

Gaurav Khanna, Carlos Medina, Anant Nyshadham, Christian Posso Suarez () and Jorge A. Tamayo

No 26313, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We investigate the effects of job displacement, as a result of mass-layoffs, on criminal arrests using a novel matched employer-employee-crime dataset in Medellín, Colombia. Job displacement leads to immediate earnings losses, and an increased likelihood of being arrested for both the displaced worker and for other youth in the family. We leverage variation in opportunities for legitimate reemployment and access to consumption credit to investigate the mechanisms underlying this job loss-crime relationship. Workers in booming sectors with more opportunities for legitimate reemployment exhibit smaller increases in arrests after job losses. Greater exposure to expansions in consumption credit also lowers the job loss-crime elasticity.

JEL-codes: J63 J65 K42 (search for similar items in EconPapers)
Date: 2019-09
New Economics Papers: this item is included in nep-lab, nep-law and nep-ure
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Citations: View citations in EconPapers (3)

Published as Gaurav Khanna & Carlos Medina & Anant Nyshadham & Christian Posso & Jorge Tamayo, 2021. "Job Loss, Credit, and Crime in Colombia," American Economic Review: Insights, American Economic Association, vol. 3(1), pages 97-114, March.

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Journal Article: Job Loss, Credit, and Crime in Colombia (2021)
Working Paper: Job Loss, Credit and Crime in Colombia (2019)
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