The effect of pretrial detention on labor market outcomes

Nicolas Grau, Gonzalo Marivil and Jorge Rivera

Working Papers from University of Chile, Department of Economics

Abstract: We combine Chilean individual administrative data for criminal cases and labor market outcomes to estimate the effect of pretrial detention on labor outcomes using the Difference-in-differences (DiD) method and an instrumental variables (IV) approach. The IV approach takes advantage of the quasi-random assignment of judges. The IV results show that pretrial detention reduces the probability of having formal employment and the average monthly wage by 39% and 56% during the six months following the final trial verdict. DiD estimation delivers estimates that are between one-third and one-half smaller. The magnitudes of the effects shown continue to be relevant as much as 24 months after the final trial verdict. The results of our analysis suggest that the negative effect of pretrial detention is (at least) driven by the lasting effect of being excluded from the labor market during the trial, the accompanying social stigma, and the impact of pretrial detention on the probability of post-verdict incarceration.

Pages: 67 pages
Date: 2021-05
New Economics Papers: this item is included in nep-lam and nep-ure
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Citations: View citations in EconPapers (3)

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Related works:
Working Paper: The Effect of Pretrial Detention on Labor Market Outcomes (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:udc:wpaper:wp518

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