Incarceration and Low Skilled Labor Markets: A Macroeconomic Analysis

Amanda Michaud and Bulent Guler

2014 Meeting Papers from Society for Economic Dynamics

Abstract: Between 1980 and 2005, the incarceration rate in the United States increased fourfold. At this level, 6.6% of the population will be imprisoned for a year or more during their lifetime. We provide a comprehensive analysis of the eects of increased incarceration rates on all actors in labor markets: criminals, non-criminals, and employers. To do so, we expand a search and matching model to include incarceration. Incarceration has two direct eects: (1) it interrupts employment relationships; and (2) it deteriorates human capital. We estimate the model by indirect inference using variation in incarceration rates across demographic groups. Simulating our model will allow us to measure the eect incarceration has had on broad labor market trends and to predict future eects for dierent policy scenarios.

Date: 2014
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed014:859

Access Statistics for this paper

More papers in 2014 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().