Exposure to Crime and Pupils’ Outcomes : Evidence from London

Estimation of unintended costs of crime is scarce, although essential. This paper investigates a prominent indirect cost of crime, i.e. the effect of exposure to crime on achievement of pupils enrolled in primary school. I employ novel geo-referenced data on the universe of crimes from police records in London. The analysis takes advantage of the very fine spatial variation in crimes and in pupils’ residences, precisely measuring the exposure to crime in the surroundings of pupils’ homes. By exploiting the within-school variation in crime, I find that crime occurring where pupils live lowers impact on pupils’ achievement at final exams of primary school. The heterogeneity analysis shows that high-ability and wealthy students are those who suffer the most from exposure to crime. I find evidence of decreasing marginal sensitivity to crime, as pupils living in less criminal areas suffer the most from exposure to crime. Overall, I interpret this evidence as consistent with a story of scarring effect and adaptation