Crime and Discrimination in the Labor Market: An Empirical Approach

Abstract

This paper investigates the existence of wage discrimination to inmates. Based on data collected from the Coordination Center for the Execution of Penalties and Alternative Measures (CEPEMA) for people serving in an open prison in Brasí lia (DF), a comparative approach was conducted with data collected from PNAD. It was then possible to verify using the decomposition process of Oaxaca-Ransom that there is statistical discrimination regarding to ex-convicts in the job market. Furthermore, it has been noticed that the full labor market participation of prisoners seems to be compromised to the extent that the empiricalresults support the assumption of Nagin and Waldfogel (1993). It indicates that access of the individual who been in prison to the job market is limited to the so-called spot market or temporary labor market. This segment of the labor market should not be confused with the so-called part time.Thus, one of the negative effects that can be understood from this is a reduction in the current value of the individual's discounted income, since long-term jobs are those that offer higher income perspectives.