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Is It Time to Let go of the Past? Effect of Clean Slate Regulation on Employment and Earnings

Author

Listed:
  • Kabir Dasgupta

    (NZ Work Research Institute, Faculty of Business, Economics and Law at AUT University)

  • Keshar Ghimire

    (Business and Economics Department, University of Cincinnati, Blue Ash College, Ohio)

  • Alexander Plum

    (NZ Work Research Institute, Faculty of Business, Economics and Law at AUT University)

Abstract

We focus on New Zealand’s clean slate legislation to analyze whether automatic concealment of criminal records improves ex-offenders’ labor market outcomes. Based on the legislation’s eligibility requirements, we utilize detailed court charges information to identify comparable groups of ex-convicts who are subsequently linked to a population-wide tax register that documents monthly employment information. We use a difference indifferences framework to compare clean slate-eligible individuals to former convicts who are approaching eligibility. Our analysis reveals that the clean slate scheme has no statistically relevant impact on employment propensity. However, we find a significant 2-2.5% increase in monthly wages during the post-implementation period.

Suggested Citation

  • Kabir Dasgupta & Keshar Ghimire & Alexander Plum, 2021. "Is It Time to Let go of the Past? Effect of Clean Slate Regulation on Employment and Earnings," Working Papers 2021-06, Auckland University of Technology, Department of Economics.
    • Handle: RePEc:aut:wpaper:202106
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Clean Slate; Court Charges data; Monthly Tax Records; Conviction; Employment; Earnings; Difference-in-Differences; Tripledifference;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law

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