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Individual Perceptions of Local Crime Risk

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  • Salm, Martin

    () (Tilburg University)

  • Vollaard, Ben

    () (Tilburg University)

Abstract

We provide evidence that perceptions of crime risk are severely biased for many years after a move to a new neighborhood. Based on four successive waves of a large crime survey, matched with administrative records on household relocations, we find that the longer an individual lives in a neighborhood, the higher their perception of the crime rate in the neighborhood. This finding holds irrespective of whether the move is from a relatively low-crime to a relatively high-crime area or vice versa. We find that avoidance behavior adjusts in line with the observed changes in beliefs.

Suggested Citation

  • Salm, Martin & Vollaard, Ben, 2014. "Individual Perceptions of Local Crime Risk," IZA Discussion Papers 8677, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp8677
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    More about this item

    Keywords

    heuristic; victimization; crime;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law

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