The Impact of Payday Lending on Crimes

48 Pages Posted: 22 Apr 2021 Last revised: 8 Sep 2021

See all articles by Chen Shen

Chen Shen

University of North Carolina (UNC) at Charlotte - Department of Finance

Date Written: September 7, 2021

Abstract

Police departments located in states allowing payday lending report 14.34% more property crimes than the police departments located in states not allowing payday lending. I also find that the police departments located in counties bordering with states allowing payday lending report more property crimes. Those results are driven by the financial pressure induced by payday loans. Furthermore, the impact of payday lending concentrates in areas with a higher proportion of the minority population.

Keywords: Payday lending, Crime, Predatory lending

JEL Classification: G38, G51

Suggested Citation

Shen, Chen, The Impact of Payday Lending on Crimes (September 7, 2021). Available at SSRN: https://ssrn.com/abstract=3831654 or http://dx.doi.org/10.2139/ssrn.3831654

Chen Shen (Contact Author)

University of North Carolina (UNC) at Charlotte - Department of Finance ( email )

9201 University City Boulevard
Charlotte, NC 28223
United States

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