In the attempt to reduce migration pressure, since 1995, the European Union has been planning to establish a free trade area with developing countries bordering the Mediterranean Sea. The process is still ongoing. Our paper tests whether it is likely to be an effective policy. We estimate a gravitational model of bilateral migrations on bilateral exports from the Mediterranean Third Countries (South) to the European Union (North) over the period 1970-2000, using different specifications. We find, in line with most of the literature, a significantly positive correlation (called "complementarity") between exports and migrations from the South to the North. Then we go one step further, trying to solve the potential endogeneity problem using average trade tariffs and bilateral exchange rate volatility as instruments for trade. Based on the OLS as well as the 2SLS results, liberalizing trade in the area of the Euro-Mediterranean partnership does not seem to be an effective policy to mitigate the migration flows, at least in the short run.
Is there a rational component in the decision to commit suicide? Economists have been trying to shed light on this question by studying whether suicide rates are related to contemporaneous conditions. This paper goes one step further: we test whether suicides are linked to forward-looking behavior. In Italy, collective sentence reductions (pardons) often lead to massive releases of prisoners. More importantly, they are usually preceded by prolonged parliamentary activity (legislative proposals, discussion, voting, etc.) that inmates seem to follow closely. We use the legislative proposals for collective pardons to measure changes in the inmates' expectations about the length of their sentences, and find that suicide rates tend to be significantly lower when pardons are proposed in congress. This suggests that, amongst inmates in Italian prisons, the average decision to commit suicide responds to changes in current expectations about future conditions. At least partially, therefore, the decision seems rationalizable.
There is little research on the gender variation in the crime market. We document a gender gap in criminal activities, based on property crimes, using data from the U.S. National Incident Based Reporting System from 1995 to 2015. We show that there is a gender participation gap, with only 30 percent of the crimes being committed by females. We try to explain the gender participation gap by focusing on incentives to commit crime, such as criminal earnings and probability of arrest. We show that on average females earn 13 percent less than males while they face a 9 percent lower likelihood of arrest. We find that males respond more to changes in illegal earnings, with an elasticity of 0.36, while females are less responsive with an elasticity of 0.23. Both genders respond equally to changes in the probability of arrest, with an elasticity around -0.14. Using a Blinder-Oaxaca type decomposition technique, we find that differences in incentives explain about 8 percent of the gender participation gap, while differences in responsiveness to changes in incentives, especially illegal earnings, explain about 56 percent of the gap. The fact that females behave differently than males has implications for the heterogeneity in response to crime control policies.1 Henceforth, we will refer to these crime rates as participation rates. 2 In the standard economic model of crime both higher earnings and a lower arrest probability can persuade a criminal to commit a crime. Therefore, we will refer to these two variables as criminal incentives. The probability of arrest deters criminals, generating a negative incentive rather than a positive one. In our model, we allow males and females to respond differently to these incentives.
Despite an increasing desire to host major sport events there is almost no research that tries to identify and measure the possible negative spillovers they generate. In particular, there is limited understanding about crime responses. This paper investigates the causal relation between hosting the 1990 Football World Cup and crime rates at the province level. Using a fixed effect estimator to control for province level differences in crime, we find that hosting the Football World Cup leads to a significant increase in most property crimes (bagsnatching, pick-pocketing, shop-lifting and burglary), but only in one violent crime (intentional personal injuries).
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