Labour market discrimination against former juvenile delinquents: evidence from a field experiment

Abstract

In view of policy action to integrate ex-offenders into society, it is important to identify the underlying mechanisms of the negative relationship between criminal record on the one hand and later employment and earnings on the other hand. In this study, we identify hiring discrimination against former juvenile delinquents in a direct way. To this end, we conduct a field experiment in the Belgian labour market. We find that labour market discrimination is indeed a major barrier in the transition to work for former juvenile delinquents. Labour market entrants disclosing a history of juvenile delinquency get about 22 percent less callback compared to their counterparts without a criminal record. This discrimination is heterogeneous by the occupation for which one applies. I. IntroductionFormer contributions have been giving evidence for a causal negative relationship between criminal record on the one hand and later employment and earnings on the other hand (Lott, 1990;Waldfogel, 1994;Grogger, 1995; Needels, 1996;Borland and Hunter, 2000;Western et al., 2001;Kling, 2006;Graffam et al., 2008;Holzer, 2009;Apel and Sweeten, 2010;Dominguez Alvarez and Loureiro, 2012). This finding is important as this labour market sanction for crime is an important component of 2 overall punishment (Holzer, 2009). These adverse labour market outcomes among former ex-offenders may have important well-being effects: unemployed are less happy (satisfied with their life) than employed (Dolan et al., 2008;Stiglitz et al., 2009;Helliwell et al., 2012). 1 Moreover, limited work opportunities may also encourage exoffenders to return to crime (Needels, 1996; Raphael and Weiman, 2007;Wu and Wu, 2012).In view of policy action to integrate ex-offenders into society, it is important to identify the underlying mechanisms of the aforementioned relationship between criminal record and later labour market outcomes. Is the negative association between criminal record and later labour market outcomes fully explained by supply side factors such as differences in worker productivity, work interest and work networks between ex-offenders and non-offenders (Waldfogel, 1994;Kling, 2006;Holzer, 2009;Apel and Sweeten, 2010)? Or does it also reflect employer discrimination so that the adverse labour market effects of criminal record are at least partly out of control of the ex-offender? In this paper we identify hiring discrimination against juvenile delinquents in Belgium using a correspondence test.Former contributions have been giving theoretical grounds for and ethical elaborations on labour market discrimination against former juvenile delinquents.1 Knabe and Rätzel (2011a) calculate that the well-being costs of unemployment are about two times higher than its pecuniary costs. The meta-analysis from McKee-Ryan et al. (2005) indicates that these well-being cost are higher for young people than for unemployed adults. Besides the impact of current unemployment on current well-being, there is also a "scarring-effect of unemployment" (Clark et al., 2...

Getting grey hairs in the labour market. An alternative experiment on age discrimination

“…In addition, Lahey (2008) argues that employers who wish to to investigate racial and sex discrimination (Bertrand and Mullainathan, 2004;Pager, 2007;Riach and Rich, 2002). More recently, correspondence tests have been used to study discrimination based on other grounds, such as beauty, criminal background and sexual orientation (Baert and Verhofstadt, 2015;Drydakis, 2009;Drydakis, 2011;Rooth, 2009). In addition, scholars have started to employ correspondence experiments to study phenomena other than labour market discrimination in strict sense, such as unemployment duration dependence and the labour market penalty of motherhood (Baert, 2014;Eriksson and Rooth, 2014;Kroft et al, 2013).…”

The employability of ex-offenders: a field experiment in the Swedish labor market

“…Research on ex-offenders' labor market performance suggests that a criminal past has negative consequences on various labor market outcomes, such as employment and earnings (Lott 1990;Waldfogel 1994;Grogger 1995;Needels 1996;Borland and Hunter 2000;Western et al 2001;Western 2002;Pager 2003;Pager et al 2009a;Pager et al 2009b;Holzer et al 2005;Holzer et al 2006;Kling 2006;Graffam et al 2008;Apel and Sweeten 2010;Dominguez Alvarez and Loureiro 2012;Baert and Verhofstadt 2015). Being deprived of labor market opportunities due to a criminal background has serious consequences for ex-offenders and for society as a whole.…”

“…There are a number of previous studies that have used field experiments to examine whether ex-offenders are discriminated against in the labor market (Schwartz and Skolnick 1962;Buikhuisen and Dijksterhuis 1971;Boshier and Johnson 1974;Pager 2003;Pager et al 2009a;Pager et al 2009b;Uggen et al 2014;Baert and Verhofstadt 2015;Decker et al 2015;Agan andStarr 2016, 2017).…”

“…Decker et al (2015) used both approaches. All studies used male job applicants only, and except for Baert and Verhofstadt (2015), all studies focused on low-skilled, entry-level occupations. Criminal background of the ex-offender varied across studies.…”

“…The three earliest studies, Baert and Verhofstadt (2015) and Agan andStarr (2016, 2017), all utilized a correspondence test experiment, i.e., fictitious written applications were sent to employers. 2 Studies conducted by Uggen et al (2014) and Pager and associates were all situation test experiments (audit studies) in which real people were recruited, acted as job applicants, and approached employers in person.…”