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

KOF Working Paper No. 358

27 Pages Posted: 28 Jun 2014

See all articles by Christian Krekel

Christian Krekel

Paris School of Economics (PSE); Centre for Economic Performance (CEP), London School of Economics (LSE); World Bank

Marie Poprawe

ETH Zürich - KOF Swiss Economic Institute

Date Written: June 26, 2014

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.

Keywords: Crime, Well-Being, Germany

JEL Classification: I31, K42, R50

Suggested Citation

Krekel, Christian and Poprawe, Marie, The Effect of Local Crime on Well-Being: Evidence for Germany (June 26, 2014). KOF Working Paper No. 358 , Available at SSRN: https://ssrn.com/abstract=2459812 or http://dx.doi.org/10.2139/ssrn.2459812

Christian Krekel

Paris School of Economics (PSE)

48 Boulevard Jourdan
Paris, 75014 75014
France

HOME PAGE: http://www.parisschoolofeconomics.eu/en/

Centre for Economic Performance (CEP), London School of Economics (LSE)

Houghton Street
London WC2A 2AE
United Kingdom

HOME PAGE: http://cep.lse.ac.uk/

World Bank

1818 H Street, NW
Washington, DC 20433
United States

HOME PAGE: http://www.worldbank.org/

Marie Poprawe (Contact Author)

ETH Zürich - KOF Swiss Economic Institute ( email )

Zurich
Switzerland

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
60
Abstract Views
600
rank
436,628
PlumX Metrics