The Impact of Payday Lending on Crimes
48 Pages Posted: 22 Apr 2021 Last revised: 8 Sep 2021
Date Written: September 7, 2021
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
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