Work

All is not lost: Organized crime and social capital formation

Year: 2024

Type: article

Abstract: We investigate how a disruptive social event, namely the emergence of organized crime infiltration in the local government, shapes social capital. We exploit the dismissal of city councils infiltrated by organized crime and a novel and fine-grained measure of social capital in Italy. Using a difference-indifferences strategy, we show that municipalities’ dissolution is associated with a significant and sizable increase in social capital. We document the mechanisms through which the presence of organized crime affects social capital, including trust diversion, changes in civic engagement, and its impact on local institutions and governance.

Source: Journal of Public Economics

DOI: 10.1016/j.jpubeco.2024.105257

Authors: Paolo Buonanno, Irene Ferrari, Alessandro Saia

Institutions: University of Bergamo, Marche Polytechnic University, Network for Studies on Pensions, Aging and Retirement, University of Bologna

Language: English

Topic: Crime, Illicit Activities, and Governance

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, Sustainable cities and communities

Open Access status: hybrid

Estimated APC paid: $3,800