This is now published in the Economic Journal.

Abstract

In this paper we study how the presence of adult entertainment establishments affects the incidence of sex crimes. We build a high-frequency daily and weekly panel that combines the exact location of non-self-reported sex crimes with the day of opening and exact location of adult entertainment establishments in New York City. We find that these businesses decrease sex crime by 13% per police precinct one week after the opening, and have no effect on other types of crime. The results suggest that the reduction is mostly driven by potential sex offenders frequenting these establishments rather than committing crimes.