Local Banking Market Frictions and Youth Crime: Evidence from Bank Failures

IF 1.5 4区 经济学 Q3 BUSINESS, FINANCE
Ghosh, Amit, Contreras, Salvador
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引用次数: 1

Abstract

This paper examines the impact of local banking market frictions measured by bank failures on youth crime. Using a difference-in-differences framework, we find white and black youth violent crimes increase by 0.11 and 0.66 per 1000 people, respectively, following a bank failure. Further, we find white property crime, petty delinquency and drug crime increase by 0.29, 0.75 and 0.35 per 1000 people. Black youth see a rise in drug crimes by 0.88 per 1000 people. Results by gender reveal male drug crimes rise by 2.4 and female property crimes by 0.66 per 1000 people, respectively. The economic effects are most persistent for petty delinquency crimes committed by white youths. Furthermore, we find evidence that bank failures worsen local labor markets conditions by increasing white youth unemployment and reduce employment in the limited-services restaurant industry; channels that likely alter the opportunity cost of youth crime.

地方银行市场摩擦与青年犯罪:来自银行倒闭的证据
本文考察了以银行倒闭衡量的本地银行市场摩擦对青年犯罪的影响。使用差异中的差异框架,我们发现,在银行倒闭后,白人和黑人青年暴力犯罪分别增加0.11和0.66 / 1000。此外,我们发现白人财产犯罪、轻微犯罪和毒品犯罪每1000人增加了0.29、0.75和0.35。黑人青年的毒品犯罪率上升了0.88 / 1000。按性别划分的结果显示,每1000人中,男性毒品犯罪增加2.4人,女性财产犯罪增加0.66人。对于白人青年犯下的轻微犯罪,经济影响最为持久。此外,我们发现有证据表明,银行倒闭通过增加白人青年失业率和减少有限服务餐饮业的就业,使当地劳动力市场状况恶化;有可能改变青少年犯罪机会成本的渠道。
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来源期刊
CiteScore
3.00
自引率
7.10%
发文量
22
期刊介绍: The Journal of Financial Services Research publishes high quality empirical and theoretical research on the demand, supply, regulation, and pricing of financial services. Financial services are broadly defined to include banking, risk management, capital markets, mutual funds, insurance, venture capital, consumer and corporate finance, and the technologies used to produce, distribute, and regulate these services. Macro-financial policy issues, including comparative financial systems, the globalization of financial services, and the impact of these phenomena on economic growth and financial stability, are also within the JFSR’s scope of interest. The Journal seeks to promote research that enriches the profession’s understanding of financial services industries, to elevate industry and product efficiencies, as well as to inform the debate and promote the formulation of sound public policies.   Officially cited as: J Financ Serv Res
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