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The Effect of Local Area Crime on Mental Health

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  • Christian Dustmann
  • Francesco Fasani

Abstract

This paper analyses the effect of local crime rates on residents’ mental health. Using longitudinal information on individuals’ mental well-being, we address the problem of sorting and endogenous moving behaviour. We find that crime causes considerable mental distress for residents, mainly driven by property crime. Effects are stronger for females, and mainly related to depression and anxiety. The distress caused by one standard deviation increase in local crime is 2-4 times larger than that caused by a one standard deviation decrease in local employment, and about one seventh of the short-term impact of the 7 July 2005 London Bombings.
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Suggested Citation

  • Christian Dustmann & Francesco Fasani, 2016. "The Effect of Local Area Crime on Mental Health," Economic Journal, Royal Economic Society, vol. 126(593), pages 978-1017, June.
  • Handle: RePEc:wly:econjl:v:126:y:2016:i:593:p:978-1017
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    File URL: http://hdl.handle.net/10.1111/ecoj.2016.126.issue-593
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    References listed on IDEAS

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    1. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-659, May.
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    3. Francesca Cornaglia & Naomi E. Feldman & Andrew Leigh, 2014. "Crime and Mental Well-Being," Journal of Human Resources, University of Wisconsin Press, vol. 49(1), pages 110-140.
    4. Giles Atkinson & Andrew Healey & Susana Mourato, 2005. "Valuing the costs of violent crime: a stated preference approach," Oxford Economic Papers, Oxford University Press, vol. 57(4), pages 559-585, October.
    5. Richard T. Carson, 2012. "Contingent Valuation: A Practical Alternative When Prices Aren't Available," Journal of Economic Perspectives, American Economic Association, vol. 26(4), pages 27-42, Fall.
    6. Lawrence F. Katz & Jeffrey R. Kling & Jeffrey B. Liebman, 2001. "Moving to Opportunity in Boston: Early Results of a Randomized Mobility Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 607-654.
    7. Gary S. Becker & Yona Rubinstein, 2011. "Fear and the Response to Terrorism: An Economic Analysis," CEP Discussion Papers dp1079, Centre for Economic Performance, LSE.
    8. Janke, K. & Propper, C. & Shields, M.A., 2013. "Does Violent Crime Deter Physical Activity?," Health, Econometrics and Data Group (HEDG) Working Papers 13/26, HEDG, c/o Department of Economics, University of York.
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Sam Watson’s journal round-up for 4th July 2016
      by Sam Watson in The Academic Health Economists' Blog on 2016-07-04 16:00:52

    Citations

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    Cited by:

    1. Melek Cigdem-Bayram, 2018. "Responding to high crime rates: what is the mix of prevention, insurance and mitigation individuals choose and its results?," Technical papers 201803, Infrastructure Victoria.
    2. Foureaux Koppensteiner, Martin & Manacorda, Marco, 2016. "Violence and birth outcomes: Evidence from homicides in Brazil," Journal of Development Economics, Elsevier, vol. 119(C), pages 16-33.
    3. repec:eee:jhouse:v:40:y:2018:i:c:p:73-82 is not listed on IDEAS
    4. Daniel Avdic & Christian Bünnings, 2015. "Does the Burglar Also Disturb the Neighbor? Crime Spillovers on Individual Well-being," Ruhr Economic Papers 0540, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    5. Janke, K. & Propper, C. & Shields, M.A., 2013. "Does Violent Crime Deter Physical Activity?," Health, Econometrics and Data Group (HEDG) Working Papers 13/26, HEDG, c/o Department of Economics, University of York.
    6. repec:zbw:rwirep:0540 is not listed on IDEAS
    7. Alan Piper, 2014. "Zukunftsangst! Fear of (and Hope for) the Future and Its Impact on Life Satisfaction," SOEPpapers on Multidisciplinary Panel Data Research 706, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Avdic, Daniel & Bünnings, Christian, 2015. "Does the Burglar Also Disturb the Neighbor? Crime Spillovers on Individual Well-being," Ruhr Economic Papers 540, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Jonathan de Quidt & Johannes Haushofer, 2017. "Depression through the Lens of Economics: A Research Agenda," NBER Chapters,in: The Economics of Poverty Traps National Bureau of Economic Research, Inc.
    10. Stéphane Mahuteau & Rong Zhu, 2016. "Crime Victimisation and Subjective Well‐Being: Panel Evidence From Australia," Health Economics, John Wiley & Sons, Ltd., vol. 25(11), pages 1448-1463, November.
    11. repec:zbw:rwirep:0541 is not listed on IDEAS
    12. Nicola Mastrorocco & Luigi Minale, 2016. "Information and Crime Perceptions: Evidence from a Natural Experiment," CReAM Discussion Paper Series 1601, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    13. Richard Dorsett & Cinzia Rienzo & Martin Weale, 2015. "Intergenerational and Inter-Ethnic Well-Being: An Analysis for the UK," National Institute of Economic and Social Research (NIESR) Discussion Papers 451, National Institute of Economic and Social Research.
    14. Carrino, Ludovico & Glaser, Karen & Avendano, Mauricio, 2018. "Later Pension, Poorer Health? Evidence from the New State Pension Age in the UK," MPRA Paper 87575, University Library of Munich, Germany.
    15. Jonathan de Quidt & Johannes Haushofer, 2016. "Depression for Economists," NBER Working Papers 22973, National Bureau of Economic Research, Inc.
    16. Johnston, David W. & Shields, Michael A. & Suziedelyte, Agne, 2015. "Victimisation, Wellbeing and Compensation: Using Panel Data to Estimate the Costs of Violent Crime," IZA Discussion Papers 9311, Institute for the Study of Labor (IZA).
    17. repec:kap:poprpr:v:37:y:2018:i:2:d:10.1007_s11113-018-9460-x is not listed on IDEAS
    18. Melek Cigdem-Bayram, 2018. "How do crime rates affect property prices?," Technical papers 201802, Infrastructure Victoria.
    19. Gustavo J. Bobonis & Mark Stabile & Leonardo Tovar, 2016. "Bombs and Babies: US Navy Bombing Activity and Infant Health in Vieques, Puerto Rico," NBER Working Papers 22909, National Bureau of Economic Research, Inc.
    20. repec:eee:socmed:v:206:y:2018:i:c:p:14-21 is not listed on IDEAS
    21. Nicola Suppa, 2015. "Towards a Multidimensional Poverty Index for Germany," Ruhr Economic Papers 0541, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

    More about this item

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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