Government regulation of firms is associated with more negative externalities and unofficial activity across countries. I argue that this correlation mainly reflects causality going from concerns about market failures to demand for government intervention. Using trust in others as a proxy for such concerns, I show that differences in trust explain a great deal of variation in entry regulations. Then, controlling for trust in the regression of market failures on regulation, the latter is no longer associated with worse economic outcomes. The same result is confirmed when I exploit country population as an alternative source of variation in regulation.

We estimate the effect of immigrant legalization on the crime rate of immigrants in Italy by exploiting an ideal regression discontinuity design: fixed quotas of residence permits are available each year, applications must be submitted electronically on specific “click days,” and are processed on a first come, first served basis until the available quotas are exhausted. Matching data on applications with individual-level criminal records, we show that legalization reduces the crime rate of legalized immigrants by 0.6 percentage points on average, on a baseline crime rate of 1.1 percent. (JEL J15, J61, K37, K42)

Immigration enforcement has ambiguous implications for the crime rate of undocumented immigrants. On the one hand, expulsions reduce the pool of immigrants at risk of committing crimes, on the other they lower the opportunity cost of crime for those who are not expelled. We estimate the effect of expulsions on the crime rate of undocumented immigrants in Italy exploiting variation in enforcement toward immigrants of different nationality, due to the existence of bilateral agreements for the control of illegal migration. We find that stricter enforcement of migration policy reduces the crime rate of undocumented immigrants.

We study the educational choices of children of immigrants in a tracked school system. We first show that immigrants in Italy enroll disproportionately into vocational high schools, as opposed to technical and academically‐oriented ones, compared to natives of similar ability. The gap is greater for male students and it mirrors an analogous differential in grade retention. We then estimate the impact of a large‐scale, randomized intervention providing tutoring and career counseling to high‐ability immigrant students. Male treated students increase their probability of enrolling into the high track to the same level of natives, also closing the gap in grade retention. There are no significant effects on immigrant girls, who exhibit similar choices and performance as native ones in absence of the intervention. Increases in academic motivation and changes in teachers' recommendation regarding high school choice explain a sizable portion of the effect. Finally, we find positive spillovers on immigrant classmates of treated students, while there is no effect on native classmates.

We develop a model explaining how criminal organizations strategically use pre-electoral violence as a way of influencing electoral results and politicians' behaviour. We then characterize the incentives to use such violence under different levels of electoral competition and different electoral rules. Our theory is consistent with the empirical evidence within Sicily and across Italian regions. Specifically, the presence of organized crime is associated with abnormal spikes in violence against politicians before elections-particularly when the electoral outcome is more uncertain-which in turn reduces voting for parties opposed by criminal organizations. Using a very large data set of parliamentary debates, we also show that violence by the Sicilian Mafia reduces anti-Mafia efforts by members of parliament appointed in Sicily, particularly from the parties that traditionally oppose the Mafia.

We study how people change their behavior after being made aware of bias. Teachers in Italian schools give lower grades to immigrant students relative to natives of comparable ability. In two experiments, we reveal to teachers their own stereotypes, measured by an Implicit Association Test (IAT). In the first, we find that learning one’s IAT before assigning grades reduces the native-immigrant grade gap. In the second, IAT disclosure and generic debiasing have similar average effects, but there is heterogeneity: teachers with stronger negative stereotypes do not respond to generic debiasing but change their behavior when informed about their own IAT. (JEL D91, I24, J15, J45)

We investigate the impact of job loss on crime and the mitigating role of unemployment benefits, exploiting detailed individual‐level data linking employment careers, criminal records, and welfare registries for the universe of male workers in Brazil. The probability of committing crimes increases on average by 23% for workers displaced by mass layoffs, and by slightly less for their cohabiting sons. Using causal forests, we show that the effect is entirely driven by young and low‐tenure workers, while there is no heterogeneity by education and income. Regression discontinuity estimates indicate that unemployment benefit eligibility completely offsets potential crime increases upon job loss, but this effect vanishes completely immediately after benefit expiration. Our findings point to liquidity constraints and psychological stress as the main drivers of criminal behavior upon job loss, while substitution between time on the job and leisure does not seem to play an important role.

We study the political impact of commercial television in Italy exploiting the staggered introduction of Berlusconi’s private TV network, Mediaset, in the early 1980s. We find that individuals with early access to Mediaset all-entertainment content were more likely to vote for Berlusconi’s party in 1994, when he first ran for office. The effect persists for five elections and is driven by heavy TV viewers, namely the very young and the elderly. Regarding possible mechanisms, we find that individuals exposed to entertainment TV as children were less cognitively sophisticated and civic-minded as adults, and ultimately more vulnerable to Berlusconi’s populist rhetoric. (JEL D72, L82, M31, Z13)

We analyze the contribution of legal status incentives on the marriage choices of natives and migrants. Access to legal status reduces the probability of immigrants intermarrying with natives by 40% and increases the hazard rate of separation for intermarriages by 20%. We develop and estimate a multidimensional equilibrium model of marriage, fertility, and separation, where individuals match on observed and unobserved characteristics. Allowing for trade-offs between cultural distance, legal status, and other socioeconomic spousal characteristics, we quantify the role of legal status and the strength of cultural preferences and evaluate the welfare consequences of granting legal status to immigrants.

We estimate the employment effects of a large program of public investment subsidies to private firms that ranked applicants on a score reflecting both objective rules and local politicians' discretion. Leveraging the rationing of funds as an ideal Regression Discontinuity Design, we characterize the heterogeneity of treatment effects and cost‐per‐new‐job across inframarginal firms and estimate the cost‐effectiveness of subsidies under factual and counterfactual allocations. Firms ranking high on objective rules and firms preferred by local politicians generated larger employment growth on average, but the latter did so at a higher cost per job. We estimate that relying only on objective criteria would reduce the cost per job by 11%, while relying only on political discretion would increase such cost by 42%.