Attending school with crime-prone peers, rather than living in the same neighborhood increases arrest rates at age 19 - 21

This paper examines how elementary-aged peers affect cognitive and non-cognitive outcomes from adolescence to adulthood. 

Results indicate exposure to these peers reduces achievement and increases antisocial behavior during middle and high school. More importantly, the researchers estimate that a five percentage point increase in school and neighborhood crime-prone peers increases arrest rates at age 19 - 21 by 6.5 and 2.6 percent, respectively. 

Additional evidence suggests these effects are due to attending school with crime-prone peers, rather than living in the same neighborhood.