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The Effect of Remittances on Crime in India

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  • Mahesh Malvika

    (Centre for International Trade and Development (CITD), Jawaharlal Nehru University, Delhi110067, India)

Abstract

There is a well-established literature that finds a strong causal association between remittance flows and economic growth and poverty. Owing to the poverty-alleviating and income-generating effects of remittances, it may theoretically reduce crime by increasing the opportunity cost of committing crime. This paper studies the effects of remittance receipts on crime outcomes in India. The identification strategy, exploits the variation in rainfall as an instrument for remittance receipts. The results suggest that remittance receipts have a negative effect on violent crimes and a positive effect on nonviolent crimes. Since remittance flows mean that more economic resources are available, remittances provide an incentive for certain crimes that thrive in the presence of economic resources. Therefore, an important implication of this result is that as remittance receipts increase income and welfare, there is a diverse effect on the costs and benefits of different types of crimes. It may result in unfavorable outcomes in the form of increases in certain nonviolent crimes.

Suggested Citation

  • Mahesh Malvika, 2020. "The Effect of Remittances on Crime in India," IZA Journal of Labor Policy, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 10(1), pages 1-18, March.
    • Handle: RePEc:vrs:izajlp:v:10:y:2020:i:1:p:18:n:15
    DOI: 10.2478/izajolp-2020-0001
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    References listed on IDEAS

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    1. Diego De la Fuente, 2024. "Remittance Income and Crime in Mexico," Working Paper Series 1024, Department of Economics, University of Sussex Business School.

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    More about this item

    Keywords

    crime; remittance receipts; income;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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