Determinants of Joblessness During the Economic Crisis: Impact of Criminality in the Italian Labour Market

On the basis of a newly built regional panel data set that considers both the evolution of employment indicators in the Italian regions and indicators of counterfeiting activities and criminality, we empirically explore the link between joblessness and criminality. During the period of a deep economic and financial crisis we observed that, unexpectedly, unemployment and inactivity rates rise together. The paper studies whether and to what extent, in the considered period, criminal activities of counterfeit and other forms of crime have affected unemployment and inactivity rate. We present results of GMM regressions showing a positive/peculiar effect of criminal activities on both the components of joblessness.