Hindering human capital accumulation: A hidden cost of the silent mafia?

Mustafa Caglayan (), Alessandro Flamini () and Babak Jahanshahi

Journal of Economic Behavior & Organization, 2021, vol. 188, issue C, 828-845

Abstract: Since the 1970s, mafias have embedded outside South Italy though employing steadily less violence in establishing their illegal business. Could this rooting and social adaptation in the most productive areas of the country impair human capital accumulation? We provide evidence of a decline in human capital in those areas that were initially wealthy and innovative before mafias established their presence and influence. Our estimates suggest that, for the top 75% of mafia-infiltrated provinces, a reduction by 25 percentiles in their position within the mafia ranking could increase the number of university graduates per capita by 4–21%.

Keywords: Organised crime; Mafia; Human capital; Education; Tertiary education (search for similar items in EconPapers)
JEL-codes: H75 J24 K42 R11 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:188:y:2021:i:c:p:828-845

DOI: 10.1016/j.jebo.2021.05.029

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