The effect of local area crime on mental health

Summary

This study 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, primarily driven by property crime. Effects are stronger for
females, and mainly related to depression and anxiety. The distress
caused by one SD increase in local crime is 2–4 times larger than that
caused by a 1 SD decrease in local employment, and about one-seventh of
the short-term impact of the 7 July 2005 London Bombings.