Ex-Convicts Face Multiple Labor Market Punishments: Estimates of Peer-Group and Stigma Effects Using Equations of Returns to Schooling

Adolfo Sachsida, Mario Jorge C. de Mendonça and Fabio Stallivieri
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Mario Jorge C. de Mendonça: Institute of Applied Economic Research

Economia, 2007, vol. 8, issue 3, .503–520

Abstract: We produced a data set from a survey of a population of convicts in probation. We combined this new data set with an official data set from the Brazilian government to study labor market discrimination faced by ex-convicts. We were interested in estimating two potential effects of discrimination, statistical (stigma) and behavioral (peer-group) effects. Our econometric results suggest that stigmatization leads to a 39% reduction in the wage earned by ex-convicts relative to the wage earned by non-convicts. They also suggest that the peer-group effect accounts for a reduction in the relative earnings of ex-convicts of 1.1% per year of study. In addition, we also show that ex-convicts earn 3.1% less per year of experience than non-convicts.

Keywords: Stigma Effect; Peer Effect; Crime Rate; Returns to Schooling; Wage Discrimination (search for similar items in EconPapers)
JEL-codes: C31 J71 K49 (search for similar items in EconPapers)
Date: 2007
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