Firm environment and employee’s crime rate: evidence from Denmark

We study the effect of the firm’s crime environment on individual crime rates. Using Danish registry data, we show the effects of individuals moving between high-crime (HC) and low-crime (LC) environments. We use a difference-in-difference estimator and mass layoffs to identify (statistically) causal effects. Individuals moving from high to low-crime firms experience a small but statistically significant decrease in crime rates. Analogously, individuals moving from low to high-crime firms experience a low but statistically significant increase in crime rates.