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The Effect of Local Crime on Well-Being: Evidence for Germany

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 signi cantly 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.

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Paper provided by KOF Swiss Economic Institute, ETH Zurich in its series KOF Working papers with number 14-358.

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Length: 25 pages
Date of creation: Jun 2014
Handle: RePEc:kof:wpskof:14-358
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