The Minimum Wage, EITC, and Criminal Recidivism

Amanda Y. Agan and Michael Makowsky

Journal of Human Resources, 2023, vol. 58, issue 5, 1712-1751

Abstract: For released prisoners, the minimum wage and earned income tax credits (EITCs) can influence their ability to find employment and their potential wages relative to illegal sources of income, affecting the probability they are reincarcerated. Using administrative prison release records we identify the effects of state variation in minimum wages and EITC policies on recidivism. We find that a minimum wage increase of $0.50 reduces the probability an individual returns to prison within three years by 2.15 percent; these reductions come mainly from returns for property and drug crimes. The availability of state EITCs also reduces recidivism, but only for women.

JEL-codes: J22 J23 J38 K14 K40 (search for similar items in EconPapers)
Date: 2023
Note: DOI: https://doi.org/10.3368/jhr.58.5.1220-11398R1
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Citations: View citations in EconPapers (8)

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Related works:
Working Paper: The Minimum Wage, EITC, and Criminal Recidivism (2018)
Working Paper: The Minimum Wage, EITC, and Criminal Recidivism (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:jhriss:v:58:y:2023:i:5:p:1712-1751

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