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Conditional Cash Transfers and Crime: Higher Income but also Better Loot

Author

Listed:
  • Fernando Borraz

    (Facultad de Ciencias Sociales-Universidad de la República and Universidad de Montevideo)

  • Ignacio Munyo

    (IEEM - Universidad de Montevideo)

Abstract

We quantify the effect of conditional cash transfer programs on crime. We find a positive correlation between welfare payments in cash significantly and criminal activities. We exploit the exogenous increase in the payment and the number of beneficiaries given by a major reformulation of the CCT program in Uruguay. The increase in crime is exclusively observed in property crime suggesting the impact is driven by economic reasons. Our findings suggest that an increase in cash available on the streets improves the loot from crime and thus increases the incentive for illegal activities.

Suggested Citation

  • Fernando Borraz & Ignacio Munyo, 2020. "Conditional Cash Transfers and Crime: Higher Income but also Better Loot," Economics Bulletin, AccessEcon, vol. 40(2), pages 1804-1813.
    • Handle: RePEc:ebl:ecbull:eb-20-00371
    as

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    References listed on IDEAS

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    10. Fernando Borraz & Nicolás González, 2009. "Impact of the Uruguayan Conditional Cash Transfer Program," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 46(134), pages 243-271.
    11. C. Fritz Foley, 2011. "Welfare Payments and Crime," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 97-112, February.
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    Cited by:

    1. Diego De la Fuente, 2024. "Remittance Income and Crime in Mexico," Working Paper Series 1024, Department of Economics, University of Sussex Business School.
    2. Brett Watson & Mouhcine Guettabi & Matthew Reimer, 2020. "Universal Cash and Crime," The Review of Economics and Statistics, MIT Press, vol. 102(4), pages 678-689, October.
    3. Sadia Naseem Naik & Dr. Aribah Aslam, 2024. "The Impact of Financial Inclusion on the Association between Government Cash Transfers and Violence Against Women," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(1), pages 61-69.
    4. Bari, MD. Abdul & Khan, Ghulam Dastgir & Katayanagi, Mari & Yoshida, Yuichiro, 2024. "Gender dynamics of the impact of cash transfer on female educational expenditure of informal settlements in Bangladesh," World Development Perspectives, Elsevier, vol. 34(C).

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    More about this item

    Keywords

    Conditional cash transfers; crime; income effect; loot;
    All these keywords.

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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