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The effect of local crime on well-being

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  • Christian Krekel
  • Marie L. Poprawe

Abstract

This paper investigates the effect of local crime on well-being in Germany, using data from the German Socio-Economic Panel (SOEP) and a novel data set constructed from official police crime statistics, covering both counties and urban districts for the time period between 1994 and 2012. We find that local area crime has a significantly negative impact on life satisfaction, makes residents worry more frequently, and worry more about crime in Germany. In particular, a 1% increase in the crime frequency ratio results in a 0.043 standard deviation decrease in life satisfaction. This effect is driven almost exclusively by violent crimes, while property crimes and other crimes have no significant impact on well-being.

Suggested Citation

  • Christian Krekel & Marie L. Poprawe, 2014. "The effect of local crime on well-being," KOF Working papers 14-358, KOF Swiss Economic Institute, ETH Zurich.
  • Handle: RePEc:kof:wpskof:14-358
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    File URL: http://dx.doi.org/10.3929/ethz-a-010173631
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    Cited by:

    1. 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.
    2. Krekel, Christian & Kolbe, Jens & Wüstemann, Henry, 2016. "The greener, the happier? The effect of urban land use on residential well-being," Ecological Economics, Elsevier, vol. 121(C), pages 117-127.

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    Keywords

    Crime; Well-Being; Germany;

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