Since 1980s, organized crime rooted in northern Italy with a new modality in its relation with the society: less violence and more illegal business. We study to what extent, if any, this social adaptation, dubbed silent mafia, to the highest productive area of the country, is interfering with human capital accumulation. We provide empirical evidence that in northern Italy provinces, the larger the presence of organized crime, the less human capital accumulation. This is due on the one hand to the relation between organized crime and entrepreneurs that reduces entrepreneurs’ incentives to innovate, and thus leads to a fall in their demand for high-skilled labor. On the other hand to mafia’s control of the territory that provides young people with examples of social elevator which reduce their incentives to acquire human capital.
Organized Crime and Human Capital
ALESSANDRO FLAMINI
;JAHANSHAHI, BABAK
2017-01-01
Abstract
Since 1980s, organized crime rooted in northern Italy with a new modality in its relation with the society: less violence and more illegal business. We study to what extent, if any, this social adaptation, dubbed silent mafia, to the highest productive area of the country, is interfering with human capital accumulation. We provide empirical evidence that in northern Italy provinces, the larger the presence of organized crime, the less human capital accumulation. This is due on the one hand to the relation between organized crime and entrepreneurs that reduces entrepreneurs’ incentives to innovate, and thus leads to a fall in their demand for high-skilled labor. On the other hand to mafia’s control of the territory that provides young people with examples of social elevator which reduce their incentives to acquire human capital.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
