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...