Author: BenYishay, Ariel
Title: Crime and Microenterprise Growth: Evidence from Mexico
Summary: In this paper we investigate one potential explanation for low rates of microenterprise growth: robbery. Robbery limits the incentives of entrepreneurs to invest in productive moveable assets, and is one of the main shocks reported by urban microentrepreneurs in a recent survey in Mexico. We explore the relationship between property crime and growth among microenterprises in Mexico using repeated cross-sectional data on these enterprises and the incidence of crime. We find that higher rates of property crime are associated with a significantly lower probability that an enterprise plans to expand in the next 12 months or experience income growth. These effects are unique to property crimes and are independent of other types of crime, including violent offenses. Finally, our results are not driven by border or drug crime states, and are robust to a number of controls for heterogeneity in the growth potential of firms and for local institutional quality.
Details: Unpublished Paper, 2012. 45p.
Source: Internet Resource: Accessed July 1, 2013 at: econ.hunter.cuny.edu
Year: 2012
Country: Mexico
URL:
Shelf Number: 129217
Keywords:
MicroenterprisesProperty CrimesRobbery (Mexico) |
