%0 Report %A Salm, Martin %A Vollaard, Ben %T Individual Perceptions of Local Crime Risk %D 2014 %8 2014 Nov %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 8677 %U https://www.iza.org/publications/dp8677 %X We provide evidence that perceptions of crime risk are severely biased for many years after a move to a new neighborhood. Based on four successive waves of a large crime survey, matched with administrative records on household relocations, we find that the longer an individual lives in a neighborhood, the higher their perception of the crime rate in the neighborhood. This finding holds irrespective of whether the move is from a relatively low-crime to a relatively high-crime area or vice versa. We find that avoidance behavior adjusts in line with the observed changes in beliefs. %K heuristic %K victimization %K crime