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Ex-Convicts Face Multiple Labor Market Punishments: Estimates of Peer-Group and Stigma Effects Using Equations of Returns to Schooling

Author

Listed:
  • Adolfo Sachsida

    (Catholic University of Brasília)

  • Mario Jorge C. de Mendonça

    (Institute of Applied Economic Research)

  • Fabio Stallivieri

Abstract

We produced a data set from a survey of a population of convicts in probation. We combined this new data set with an official data set from the Brazilian government to study labor market discrimination faced by ex-convicts. We were interested in estimating two potential effects of discrimination, statistical (stigma) and behavioral (peer-group) effects. Our econometric results suggest that stigmatization leads to a 39% reduction in the wage earned by ex-convicts relative to the wage earned by non-convicts. They also suggest that the peer-group effect accounts for a reduction in the relative earnings of ex-convicts of 1.1% per year of study. In addition, we also show that ex-convicts earn 3.1% less per year of experience than non-convicts.

Suggested Citation

  • Adolfo Sachsida & Mario Jorge C. de Mendonça & Fabio Stallivieri, 2007. "Ex-Convicts Face Multiple Labor Market Punishments: Estimates of Peer-Group and Stigma Effects Using Equations of Returns to Schooling," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 8(3), pages .503-520.
    • Handle: RePEc:anp:econom:v:8:y:2007:i:3:p:503-520
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    References listed on IDEAS

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    More about this item

    Keywords

    Stigma Effect; Peer Effect; Crime Rate; Returns to Schooling; Wage Discrimination;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • K49 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Other

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