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Formal Employment and Organized Crime : Regression Discontinuity Evidence from Colombia

Khanna, Gaurav - 2019

Canonical models of crime emphasize economic incentives. Yet, causal evidence of sorting into criminal occupations in … formal-sector employment induces crime. Regression discontinuity estimates show this policy generated reductions in formal …-sector employment and a corresponding spike in organized crime, but no effects on crimes of impulse or opportunity …

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