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July 25, 2016
"Does 'Ban the Box' Help or Hurt Low-Skilled Workers? Statistical Discrimination and Employment Outcomes When Criminal Histories Are Hidden"
The title of this post is the title of this notable new paper authored by Jennifer Doleac and Benjamin Hansen now available via SSRN. Here is the abstract:
Jurisdictions across the United States have adopted “ban the box” (BTB) policies preventing employers from conducting criminal background checks until late in the job application process. Their goal is to improve employment outcomes for those with criminal records, with a secondary goal of reducing racial disparities in employment. However, removing information about job applicants’ criminal histories could lead employers who don’t want to hire ex-offenders to try to guess who the ex-offenders are, and avoid interviewing them. In particular, employers might avoid interviewing young, low-skilled, black and Hispanic men when criminal records are not observable. This would worsen employment outcomes for these already-disadvantaged groups.
In this paper, we use variation in the details and timing of state and local BTB policies to test BTB’s effects on employment for various demographic groups. We find that BTB policies decrease the probability of being employed by 3.4 percentage points (5.1%) for young, low-skilled black men, and by 2.3 percentage points (2.9%) for young, low-skilled Hispanic men. These findings support the hypothesis that when an applicant’s criminal history is unavailable, employers statistically discriminate against demographic groups that are likely to have a criminal record.
July 25, 2016 at 11:05 AM | Permalink
I appreciate the attempt to figure these things out though such low statistical numbers seem open to debate when you look at the numbers. For instance, in many areas, you simply are not going to be really able to simply avoid all young black/Hispanic men for various positions. I gather they took this into consideration but still. Also, criminal background checks would affect whites too. This might be outside of the "box" of their research here, but wonder how that works out.
Posted by: Joe | Jul 25, 2016 11:11:26 AM