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Working Paper

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crime, search, unemployment, wage dispersion


I investigate how long it takes for released inmates to find a job, and when they find a job, how their incarceration rate changes. An on-the-job search model with crime is used to model criminal behavior, derive the estimation method and analyze several policies including a job placement program. The results show the unemployed are incarcerated twice as fast as the employed and take on average four months to find a job. Combining these results, it is demonstrated that reducing the average unemployment spell of criminals by two months reduces crime and recidivism by more than five percent.

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Economics Commons



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