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

Mustafa Caglayan, Alessandro Flamini, Babak Jahanshahi

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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 maas established their presence and influence. Our estimates suggest that, for the top 75% of mafia-inlfitrated provinces, a reduction by 25 percentiles in their position within the maa ranking could increase the number of university graduates per capita by 4-21%.
Original languageEnglish
Pages (from-to)828-845
JournalJournal of Economic Behavior & Organization
Volume188
Early online date24 Jun 2021
DOIs
Publication statusPublished - Aug 2021
Externally publishedYes

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