Family Business or Social Problem? The Cost of Unreported Domestic Violence

Social interest in problems such as domestic violence is typically motivated by concerns regarding equity, rather than efficiency. However, we document that reporting domestic violence yields substantial benefits to external parties. Specifically, we find that while children exposed to as-yet-unreported domestic violence reduce the achievement of their classroom peers, these costs disappear completely once the parent reports the violence to the court. This suggests the public has an interest in helping families overcome their problems in general, and to report domestic violence in particular. It also suggests that social and judicial interventions may help combat negative peer effects in schools.