Working papers results

We argue that fertility trends in advanced societies are in part driven by differences in trust. The argument builds around the idea that trust implies individuals and couples being willing to outsource traditional family activities to other individuals outside their own family. Trust is therefore seen as a catalyser for the process of increased female labour force participation, the diffusion of childcare facilities, and hence a halt to the continuing fertility decline. Support of this hypothesis is drawn from the World Values Survey and European Values Survey. We present evidence both from country-level regressions and from a series of multilevel analyses. We find that trust by itself is positively associated with fertility over recent decades. Moreover, trust interacts with women’s education. In particular, as higher education for women has expanded, which traditionally is seen as a robust predictor for lower fertility, trust is a precondition for achieving higher fertility among those women with very high education.

I examine the post-war economic development of two regions in southern Italy exposed to mafia activity after the 1970s and apply synthetic control methods to estimate their counterfactual economic performance in the absence of organized crime. The synthetic control is a weighted average of other regions less affected by ma a activity that mimics the economic structure and outcomes of the regions of interest several years before the advent of organized crime. The comparison of actual and counterfactual development shows that the presence of ma a lowers GDP per capita by 16%, at the same time as murders increase sharply relative to the synthetic control. Evidence from electricity consumption and growth accounting suggests that lower GDP reflects a net loss of economic activity, due to the substitution of private capital with less productive public investment, rather than a mere reallocation from the official to the unofficial sector.

Interpersonal trust favors the expansion of organizations by allowing the delegation of decisions and tasks among anonymous others or people that interact only infrequently. We document these facts for a representative survey of Italian manufacturing firms and use this source of data to construct an industry-specific measure of need-for-delegation in production. We then show that trust shapes comparative advantage, as high-trust regions and countries exhibit larger value added and export shares in delegation-intensive industries relative to other industries. Such effects are associated with an increase in average firm size, while the number of firms is not significantly affected. Larger average size reflects in turn a shift of the distribution away from the smallest firms, consistently with the idea that trust allows organizations to expand beyond the narrow circle of family members and close friends.

We present a theoretical model of immigration and crime in which legal status raises the opportunity cost of crime, illegal immigrants may be deported, and there is endogenous selection into legal status. We estimate the model exploiting administrative records on the universe of prison inmates pardoned with a clemency bill in Italy on August 2006, and exogenous variation in legal status after the European Union enlargement of January 2007. The causal effect of legal status amounts to a 50% reduction in recidivism, and explains 1/2 to 2/3 of the observed differences in crime rates between legal and illegal immigrants.

Large variation exists in the frequency of informal childcare provided by grandparents across Europe. At the same time, a wide North-South divide characterizes European social policies. Do welfare policy arrangements shape the role of grandparents? If yes, to what extent do  grandparenting depend on the availability of public services offered for child care, parental leave regulation and legal obligations of family support? Combining micro-data from the Survey of Health, Ageing and Retirement in Europe and macro-indicators from the Multilinks database, this study aims to answer these questions and to further clarify the link between welfare provision and use of grandparents' resources for working mothers. By implementing country-specific regression models, we find a clear association between the policy context of the country of residence and (daily) grandparenting.

This paper investigates how social interactions among friends shape fertility. We specifically examine whether and how friends' fertility behaviour affects an individual's transition to parenthood. By integrating insights from economic and sociological theories, we elaborate on the mechanisms via which interactions among friends might affect an individual's risk of becoming a parent. By exploiting the survey design of the Add Health data, we follow a strategy that allows us to properly identify interaction effects and distinguish them from selection and contextual effects. We engage in a series of discrete time event history models with random effect at the dyadic level. Results show that, net of confounding effects, a friend's childbearing increases an individual's risk of becoming a parent. We find a short-term, curvilinear effect: an individual's risk of childbearing starts increasing after a friend's childbearing, it reaches its peak around two years later, and then decreases.