Another Brick in the Wall: How Repurposed Mafia Properties Affect Local Education and the Perception of Mafia
Presented at: NWSSDTP conference (Lancaster University, 2024) - AMBS Doctoral Conference (University of Manchester, 2024) - CLEAN Unit (Bocconi University, 2024) - Women in State Capacity Conference (Oxford Martin School, 2025) - AYEM Online Seminars (2025) - scheduled: UniMi-JEM 4th Junior Economics Meeting (2025)
Download: Accessible upon request
Abstract: Real estate confiscation is a widespread practice to tackle organised crime throughout European countries. The Italian policy for the confiscation of Mafia assets also allows the social reuse of these properties to regenerate Mafia-ridden neighbourhoods. In this context, the socio-economic effects of reusing Mafia assets are still unexplored. Using school-level geo-referenced data from 2015 to 2022, I exploit the staggered reuse of Mafia properties to investigate local educational patterns within Mafia-ridden neighbourhoods. My results reveal a significant decrease in the dropout rate for schools having at least one reused Mafia residential property within their students’ catching area. The effect is sharper and larger where the number of CSOs is higher and where more people are unemployed. Moreover, I argue how the measured effect is driving a change both in educational resources and community perception. Consistently, I show that the effect is not driven by previous steps of the policy. From a policy perspective, these findings show the importance of reprioritizing public funds to improve human and social capital in Mafia strongholds, as well as addressing the bureaucratic issues that impede the effective restoration of confiscated properties.