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A crime 2.0 - cybercrime, e-talent, and institutions

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  • Seo-Young Cho

    (University of Marburg)

Abstract

Cybercrime is typically profiled as a skill-intensive crime committed by educated, young criminals. This observation raises the controversial question of whether advanced knowledge and skills are a pull factor of cybercrime. In this paper, the linkage between e-skills and cybercrime is investigated using statistics from up to 28 European countries. Through the investigation, it is shown that electronic skills induce more cybercrime under weak institutions where the rules of law do not provide protection and incentives for productive entrepreneurial activities. This compound effect between e-skills and institutions suggests that institutional factors are crucial to allocating human capital between productive and criminal activities in cyberspace.

Suggested Citation

  • Seo-Young Cho, 2016. "A crime 2.0 - cybercrime, e-talent, and institutions," MAGKS Papers on Economics 201608, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:201608
    as

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    File URL: http://www.uni-marburg.de/fb02/makro/forschung/magkspapers/paper_2016/08-2016_cho.pdf
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    References listed on IDEAS

    as
    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    2. Nir Kshetri, 2010. "The Global Cybercrime Industry," Springer Books, Springer, number 978-3-642-11522-6, April.
    3. Nir Kshetri, 2010. "Simple Economics of Cybercrime and the Vicious Circle," Springer Books, in: The Global Cybercrime Industry, chapter 0, pages 35-55, Springer.
    4. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    5. Kaufmann, Daniel & Kraay, Aart & Mastruzzi, Massimo, 2010. "The worldwide governance indicators : methodology and analytical issues," Policy Research Working Paper Series 5430, The World Bank.
    6. Tyler Moore & Richard Clayton & Ross Anderson, 2009. "The Economics of Online Crime," Journal of Economic Perspectives, American Economic Association, vol. 23(3), pages 3-20, Summer.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    cybercrime; e-skills; institutions; entrepreneurship;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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