1. Evolution of the Relationship Between Incarceration and the Labor Market in the United States, 1945-2016
- Author
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Cantekin, Kerem, Elgin, Ceyhun, and Elveren, Adem Y.
- Subjects
Labor market -- Statistics ,Unemployment -- Statistics ,Economic conditions -- Statistics ,Economics ,Psychology and mental health ,Sociology and social work - Abstract
This paper examines the relationship between the incarceration rate and several major labor market variables in the U.S. for 1960-2016. Our analysis shows that a high crime rate precedes high punishment intensity. In turn, high punishment intensity is followed by a reduction in the crime rate. Our analysis also reveals that the 10th percentile wage rate is highly correlated with the incarceration rate whereas unemployment length and rate have inconsistent effects. That is, the incarceration rate rises as unemployment falls yet remains stable when unemployment length and rate rise. Finally, inequality has a surprisingly high correlation with the incarceration rate. Key Words: incarceration, labor market, real wage, unemployment, inequality, U.S. economy, Introduction In this article, we investigate the evolution of the incarceration rate in the U.S. and its relationship with several labor market variables. Since the early 1980s, the rise in [...]
- Published
- 2022