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Ban the Box: The Effects of Criminal Background Information on Labor Market Outcomes

Author

Listed:
  • Ashley Hirashima

    (University of Hawaii Economic Research Organization (UHERO) and Department of Economics)

Abstract

This paper seeks to investigate the effects of Ban-the-Box laws across the United States. Ban-the-Box laws make it illegal to ask whether an applicant has been convicted of a crime on a job application. The effects are consistent with that of statistical discrimination where the policy is having adverse effects on individuals labor market outcomes. I find that without perfect information about an individual's criminal history, firms base their perceived productivity of a potential applicant on an expected relationship between race and criminality. This results in negative effects on labor market outcomes for all individuals, especially for black males, who are particularly vulnerable.

Suggested Citation

  • Ashley Hirashima, 2016. "Ban the Box: The Effects of Criminal Background Information on Labor Market Outcomes," Working Papers 201606, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:201606
    as

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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_16-06.pdf
    File Function: First version, 2016
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    References listed on IDEAS

    as
    1. Devah Pager, 2003. "The mark of a criminal record," Natural Field Experiments 00319, The Field Experiments Website.
    2. Eric D. Gould & Bruce A. Weinberg & David B. Mustard, 2002. "Crime Rates And Local Labor Market Opportunities In The United States: 1979-1997," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 45-61, February.
    3. Joseph G. Altonji & Charles R. Pierret, 2001. "Employer Learning and Statistical Discrimination," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 116(1), pages 313-350.
    4. Holzer, Harry J & Raphael, Steven & Stoll, Michael A, 2006. "Perceived Criminality, Criminal Background Checks, and the Racial Hiring Practices of Employers," Journal of Law and Economics, University of Chicago Press, vol. 49(2), pages 451-480, October.
    5. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)

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