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Revisiting the Lasting Impacts of Incarceration

Author

Listed:
  • John Eric Humphries

    (Yale University)

  • CŽcile Macaire

    (Yale University)

  • AurŽlie Ouss

    (University of Pennsylvania)

  • Megan T. Stevenson

    (University of Virginia Law School)

  • Winnie van Dijk

    (Yale University)

Abstract

Using newly-linked administrative and commercial data from Virginia spanning 25 years, we study the consequences of incarceration. While previous research has examined labor market outcomes and recidivism, we focus on two of the primary channels through which low-income households build wealth: asset ownership (homes and cars) and human capital formation. To identify causal effects, we use a matched differencein-differences design. In line with much of the literature on the impact of incarceration in the U.S., we find no evidence of scarring effects on labor market outcomes or changes in recidivism beyond the incapacitation period. However, we find that incarceration leads to a persistent reduction in asset accumulation: seven years after sentencing, homeownership has declined by 1.1 percentage points (12.1%) and car ownership by 2.7 percentage points (18.1%). Incarceration also lowers human capital formation, reducing college enrollment by 1.4 percentage points (15.1%).

Suggested Citation

  • John Eric Humphries & CŽcile Macaire & AurŽlie Ouss & Megan T. Stevenson & Winnie van Dijk, 2025. "Revisiting the Lasting Impacts of Incarceration," Cowles Foundation Discussion Papers 2441, Cowles Foundation for Research in Economics, Yale University.
  • Handle: RePEc:cwl:cwldpp:2441
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    File URL: https://cowles.yale.edu/sites/default/files/2025-05/d2441.pdf
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    References listed on IDEAS

    as
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