Hanging Out With the Usual Suspects: Neighborhood Peer Effects and Recidivism

Abstract

Social interactions within neighborhoods, schools and detention facilities are important determinants of criminal behavior. However, little is known about the degree to which neighborhood peers affect successful community re-entry following incarceration. This paper measures the influence of pre-incarceration social networks on recidivism by exploiting the fact that peers may be locked up when a prisoner returns home. Using detailed arrest and incarceration data that includes residential addresses for offenders, we find consistent and robust evidence that a former inmate is less likely to reoffend if more of his peers are held captive while he reintegrates into society.

Keywords: Crime, Recidivism, Peer Effects, Social Spillovers, Social Interaction

JEL Classification: C31, J10, K42, Z13