Are Dollar Stores Magnets for Violent Crime? Evidence from Chicago

Abstract

With the rise of economic inequality in recent decades, dollar stores have flourished in the United States. Although the media has increasingly portrayed dollar stores as violent crime magnets, limited academic research has examined their impact on nearby crime. This study employed a difference-in-differences approach to investigate the impact of dollar stores on localized violent crime patterns in Chicago. Results showed a significant increase in violent crimes, especially robberies, in nearby areas relative to the control areas, following the opening of dollar stores. There were no signs of spatial crime displacement. Moreover, after the closing of dollar stores, the levels of violent crime in nearby areas relative to the control areas returned to those of the prestore opening period, regardless of the type of crime. This study also explored how the impact of dollar store openings on nearby crime rates evolves over time and varies according to the surrounding context of the store's location.