Shoag-Veuger-Ban-the-box-WP-updated-June
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Shoag-Veuger-Ban-the-box-WP-updated-June
As!AMERICAN ENTERPRISE INSTITUTE“Ban the box” measures help high crime neighborhoodsDaniel Shoag Harvard Kennedy School and Case Western Reserve Unive Shoag-Veuger-Ban-the-box-WP-updated-Juneersity Stan VeugerAmerican Enterprise InstituteAEI Economics Working Paper 2016-08 Updated June 2020© 2020 by Daniel Shoag and Stan Veuger All rights reserved.The American Enterprise Institute (AEI) is a nonpartisan, nonprofit, 501(c)(3) educational organization and does not take institutional posit Shoag-Veuger-Ban-the-box-WP-updated-Juneions on any issues. The views expressed here are those of the author(s).“Ban the Box*’ Measures Help High-Crime Neighborhoods* 1Daniel Shoag**Stan VeuShoag-Veuger-Ban-the-box-WP-updated-June
ger'“June 26. 2020Many localities have in recent years regulated the use of questions about criminal history in hiring, or "banned the box." We show tAs!AMERICAN ENTERPRISE INSTITUTE“Ban the box” measures help high crime neighborhoodsDaniel Shoag Harvard Kennedy School and Case Western Reserve Unive Shoag-Veuger-Ban-the-box-WP-updated-Junees. This effect can be seen in both aggregate employment patterns for high-crime neighborhoods and in commuting patterns to workplace destinations with this type of ban. The increases are particularly large in the public sector and in lower-wage jobs. This is the first nationwide evidence that these Shoag-Veuger-Ban-the-box-WP-updated-June policies do. indeed, increase employment opportunities in neighborhoods with many ex-offenders.1 We thank Nikolai Boboshko, Philip Hoxie, and Hao-KaiShoag-Veuger-Ban-the-box-WP-updated-June
Pai for excellent research assistance. Dennis Carlton, Jeffrey Clemens, Terry-Ann Craigie, Jennifer Ooleac, Carolina Ferrerosa-Young, Harry Holzer, MAs!AMERICAN ENTERPRISE INSTITUTE“Ban the box” measures help high crime neighborhoodsDaniel Shoag Harvard Kennedy School and Case Western Reserve Unive Shoag-Veuger-Ban-the-box-WP-updated-Junef the American Economic Association, the American Political Science Association, the Midwest Economic Association, the Midwest Political Science Association, and the Southern Economic Association, the Bureau of Economic Analysis, the Fall Research Conference of the Association for Public Policy Anal Shoag-Veuger-Ban-the-box-WP-updated-Juneysis and Management, the Harvard Kennedy School, and the U.S. Census Bureau, Local Employment Dynamics Partnership, and Council for Community and EconShoag-Veuger-Ban-the-box-WP-updated-June
omic Research Webinar provided insightful comments and helpful suggestions. We are particularly grateful to the late Devah Pager for her guidance.1 CaAs!AMERICAN ENTERPRISE INSTITUTE“Ban the box” measures help high crime neighborhoodsDaniel Shoag Harvard Kennedy School and Case Western Reserve Unive Shoag-Veuger-Ban-the-box-WP-updated-June Policy Research, IE School of Global and Public Affairs, and Tilburg University. Corresponding Author: American Enterprise Institute, 1789 Massachusetts Avenue, Washington, DC 20036, stan,veuger@aei,org.Slightly fewer than half of all private-sector firms and practically all government agencies in Shoag-Veuger-Ban-the-box-WP-updated-Junethe United States include questions along the lines of “Have you ever been convicted of a crime?” in employment applications, or ask applicants to cheShoag-Veuger-Ban-the-box-WP-updated-June
ck a box to indicate that they have been convicted of a crime (Conncrlcy cl al., 2001). Efforts to remove such questions have gained steam over the paAs!AMERICAN ENTERPRISE INSTITUTE“Ban the box” measures help high crime neighborhoodsDaniel Shoag Harvard Kennedy School and Case Western Reserve Unive Shoag-Veuger-Ban-the-box-WP-updated-June and employers’ reluctance to hire convicts (Pager et al., 2009: The Sentencing Project. 2019). Tn response, various jurisdictions, government agencies, and private-sector firms decided to eliminate questions about applicants' criminal background OU application documents or to mandate that employers Shoag-Veuger-Ban-the-box-WP-updated-June do so, i.e., to "ban the box" (Avery, 2019; Stacey and Cohen, 2017).Our goal in this paper is to study the effects of this latter response - bans onShoag-Veuger-Ban-the-box-WP-updated-June
questions about criminal records (early on) in employee screening processes - on workers in high-crime neighborhoods. Our central finding is that thesAs!AMERICAN ENTERPRISE INSTITUTE“Ban the box” measures help high crime neighborhoodsDaniel Shoag Harvard Kennedy School and Case Western Reserve Unive Shoag-Veuger-Ban-the-box-WP-updated-Junehe greatest population of workers with criminal records. This robust increase is in large part driven by residents gelling hired into the public sector, where compliance is likely to be highest and which is Otten the central target of these bans. The greatest increases occur in the lowcst-wagc jobs. Shoag-Veuger-Ban-the-box-WP-updated-June What this shows is that, perhaps surprisingly, Ban the Box measures can be seen as effective place-based policies.The recency of Ban the Box measuresShoag-Veuger-Ban-the-box-WP-updated-June
means that research on their consequences has so far been limited. In addition, previous work. c.g. Dolcac and Hansen (forthcoming), focused mainly oAs!AMERICAN ENTERPRISE INSTITUTE“Ban the box” measures help high crime neighborhoodsDaniel Shoag Harvard Kennedy School and Case Western Reserve Unive Shoag-Veuger-Ban-the-box-WP-updated-Junentify potential unintended consequences of the2bans. We focus instead on evaluating these policies by studying their impact on the labor market performance of workers with criminal records, the group specifically targeted, to see whether the policies’ intended consequences materialized. We also use Shoag-Veuger-Ban-the-box-WP-updated-Junehyperlocal (census tract level) data that allow us to identify the beneficiaries of Ban the Box policies at a more granular level than the MSA-level cShoag-Veuger-Ban-the-box-WP-updated-June
hanges studied by Doleac and Hansen.The paper most directly related to our work is by Jackson and Zhao (2016). who study the introduction of Ban the BAs!AMERICAN ENTERPRISE INSTITUTE“Ban the box” measures help high crime neighborhoodsDaniel Shoag Harvard Kennedy School and Case Western Reserve Unive Shoag-Veuger-Ban-the-box-WP-updated-Juneyment does not vary’ much in the year after Ban the Box was introduced. Jackson and Zhao construct a control group of workers without criminal records, but can only match them to treated workers based on age and residential location, not on skill or educational attainment. This makes it difficult to Shoag-Veuger-Ban-the-box-WP-updated-June adequately control for potentially differential trends stemming from the financial crisis that occurred at the same time.We do not use individual-levShoag-Veuger-Ban-the-box-WP-updated-June
el criminal records. Instead, our contributions are that we provide nationwide estimates of the impact of Ban the Box rules on high-crime neighborhoodAs!AMERICAN ENTERPRISE INSTITUTE“Ban the box” measures help high crime neighborhoodsDaniel Shoag Harvard Kennedy School and Case Western Reserve Unive Shoag-Veuger-Ban-the-box-WP-updated-Juneed to a Ban the Box measure implemented at the very nadir of the Great Recession's labor market experience. We exploit variation in whether and when a range of cities, counties, and states implemented them to identify their significance using LEHD Origin-Destination Employment Statistics (LODES) on Shoag-Veuger-Ban-the-box-WP-updated-Juneemployment outcomes. We do this, mostly, with difference-in-difference, triple-difference, and quadruple-difference estimators that compare differentShoag-Veuger-Ban-the-box-WP-updated-June
groups and small neighborhoods within cities as these cities adopt bans at different points in time. For example, one specification compares residentsAs!AMERICAN ENTERPRISE INSTITUTE“Ban the box” measures help high crime neighborhoodsDaniel Shoag Harvard Kennedy School and Case Western Reserve Unive Shoag-Veuger-Ban-the-box-WP-updated-June subject to such Hiles, before and after implementation.We proceed as follows. In the next section, we present background information on the role played by employee screening procedures and criminal records in hiring processes, the roll-out of the policies we study, and the conceptual framework with Shoag-Veuger-Ban-the-box-WP-updated-Junein which we will evaluate then effectiveness, hl Section II we introduce the data we will draw upon in that evaluation. Section III explains why we foShoag-Veuger-Ban-the-box-WP-updated-June
cus on high-crime neighborhoods: their residents are more likely to have criminal records. We then discuss the impact of Ban the Box measures on emploAs!AMERICAN ENTERPRISE INSTITUTE“Ban the box” measures help high crime neighborhoodsDaniel Shoag Harvard Kennedy School and Case Western Reserve Unive Shoag-Veuger-Ban-the-box-WP-updated-JuneVI concludes by discussing the implications of our findings for public policy.I. Criminal Records in Employee ScreeningIn the early stages of interacting with potential employers, job seekers are often asked whether they have ever been convicted of a crime. In addition, many organizations run crimin Shoag-Veuger-Ban-the-box-WP-updated-Juneal background checks on potential employees, forcing applicants to respond truthfully. For example, roughly 17% of the job listings in the large databShoag-Veuger-Ban-the-box-WP-updated-June
ase of postings collected by Burning Glass Teclinologies. a leading provider of online job market data, announce such checks in the advertisement itseAs!AMERICAN ENTERPRISE INSTITUTE“Ban the box” measures help high crime neighborhoodsDaniel Shoag Harvard Kennedy School and Case Western Reserve Unive Shoag-Veuger-Ban-the-box-WP-updated-June linns to practically all government agencies (Connerley et al., 2001). Oft-cited goals of these employee screening practices are to mitigate risk of fraud or criminal activity by employees (Hughes et al.. 2013). to protect oneself from negligent hiring lawsuits (Connerley et al.. 2001), or. more ge Shoag-Veuger-Ban-the-box-WP-updated-Junenerally, to4avoid employing persons of poor character, skills, and work ethic, or who are likely to be arrested again soon (Freeman. 2008; Gerlach, 20Shoag-Veuger-Ban-the-box-WP-updated-June
06). In addition, federal and state laws ban certain employers, including public-sector employers, from hiring ex-offenders for certain positions and/Gọi ngay
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