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Collateral Costs: The Effects of Incarceration on the Employment and Earnings of Young Workers

  • Holzer, Harry J.

    ()

    (Georgetown University)

In this paper I review the empirical evidence on the effects of incarceration on the subsequent employment and earnings of less-educated young prisoners. In this discussion I include evidence from: 1) Employer surveys and audit studies of hiring; 2) Survey data (mostly from the NLSY79) and administrative data; and 3) state-level incarceration data linked to micro employment data for young black men. The strengths and weaknesses of each type of analysis are discussed as well. The preponderance of the evidence considered suggests that, all else equal, spells of incarceration do tend to reduce subsequent employment and earnings for those with criminal records.

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File URL: http://ftp.iza.org/dp3118.pdf
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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3118.

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Length: 42 pages
Date of creation: Oct 2007
Date of revision:
Handle: RePEc:iza:izadps:dp3118
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  1. Holzer, Harry J, 1987. "Informal Job Search and Black Youth Unemployment," American Economic Review, American Economic Association, vol. 77(3), pages 446-52, June.
  2. Joel Waldfogel, 1994. " The Effect of Criminal Conviction on Income and the Trust "Reposed in the Workmen"," Journal of Human Resources, University of Wisconsin Press, vol. 29(1), pages 62-81.
  3. Daniel Immergluck, 1996. "What employers want: Job prospects for less-educated workers," The Review of Black Political Economy, Springer, vol. 24(4), pages 135-143, June.
  4. Devah Pager, 2003. "The mark of a criminal record," Natural Field Experiments 00319, The Field Experiments Website.
  5. Gary Burtless, 1985. "Are targeted wage subsidies harmful? Evidence from a wage voucher experiment," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 39(1), pages 105-114, October.
  6. Grogger, Jeff, 1992. "Arrests, Persistent Youth Joblessness, and Black/White Employment Differentials," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 100-106, February.
  7. John H. Tyler & Jeffrey R. Kling, 2006. "Prison-Based Education and Re-Entry into the Mainstream Labor Market," NBER Working Papers 12114, National Bureau of Economic Research, Inc.
  8. Cho, Rosa & LaLonde, Robert J., 2005. "The Impact of Incarceration in State Prison on the Employment Prospects of Women," IZA Discussion Papers 1792, Institute for the Study of Labor (IZA).
  9. Jeff Grogger, 1997. "Market Wages and Youth Crime," NBER Working Papers 5983, National Bureau of Economic Research, Inc.
  10. Sarah Hamersma, 2008. "The effects of an employer subsidy on employment outcomes: A study of the work opportunity and welfare-to-work tax credits," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(3), pages 498-520.
  11. Neumark, David, 1996. "Sex Discrimination in Restaurant Hiring: An Audit Study," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 915-41, August.
  12. 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 451-80, October.
  13. Jeffrey R. Kling & David Weiman & Bruce Western, 2001. "The Labor Market Consequences of Incarceration," Working Papers 829, Princeton University, Department of Economics, Industrial Relations Section..
  14. Nagin, Daniel & Waldfogel, Joel, 1995. "The effects of criminality and conviction on the labor market status of young British offenders," International Review of Law and Economics, Elsevier, vol. 15(1), pages 109-126, January.
  15. V. J. Hotz & J. K. Scholz, . "Measuring Employment and Income for Low-Income Populations with Administrative and Survey Data," Institute for Research on Poverty Discussion Papers 1224-01, University of Wisconsin Institute for Research on Poverty.
  16. Lawrence F. Katz, 1996. "Wage Subsidies for the Disadvantaged," NBER Working Papers 5679, National Bureau of Economic Research, Inc.
  17. Grogger, Jeffrey, 1995. "The Effect of Arrests on the Employment and Earnings of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 110(1), pages 51-71, February.
  18. Levitt, Steven D, 1996. "The Effect of Prison Population Size on Crime Rates: Evidence from Prison Overcrowding Litigation," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 319-51, May.
  19. John Schmitt & Dean Baker, 2006. "The Impact of Undercounting in the Current Population Survey," CEPR Reports and Issue Briefs 2006-22, Center for Economic and Policy Research (CEPR).
  20. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
  21. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
  22. Harry J. Holzer & Steven Raphael & Michael A. Stoll, 2001. "Will Employers Hire Ex-Offenders? Employer Preferences, Background Checks, and Their Determinants," JCPR Working Papers 238, Northwestern University/University of Chicago Joint Center for Poverty Research.
  23. Chinhui Juhn & Kevin M. Murphy & Robert H. Topel, 1991. "Why Has the Natural Rate of Unemployment Increased over Time?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(2), pages 75-142.
  24. Freeman, Richard B., 1999. "The economics of crime," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 52, pages 3529-3571 Elsevier.
  25. Richard B. Freeman, 1991. "Crime and the Employment of Disadvantaged Youths," NBER Working Papers 3875, National Bureau of Economic Research, Inc.
  26. David H. Autor & David Scarborough, 2004. "Will Job Testing Harm Minority Workers?," NBER Working Papers 10763, National Bureau of Economic Research, Inc.
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