In this paper, we analyze the effect of employer-initiated criminal background checks on the likelihood that employers hire African Americans. We find that employers who check criminal backgrounds are more likely to hire African American workers, especially men. This effect is stronger among those employers who report an aversion to hiring those with criminal records than among those who do not. We also find similar effects of employer aversion to ex-offenders and their tendency to check backgrounds on their willingness to hire other stigmatized workers, such as those with gaps in their employment history. These results suggest that, in the absence of criminal background checks, some employers discriminate statistically against black men and/or those with weak employment records. Such discrimination appears to contribute substantially to observed employment and earnings gaps between white and black young men.

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In this paper, we assess whether boosting minority car-ownership rates would narrow inter-racial employment rate differentials. We pursue two empirical strategies. First, we explore whether the effect of auto ownership on the probability of being employed is greater for more segregated groups of workers. Exploiting the fact that African-Americans are considerably more segregated from whites than are Latinos, we estimate car-employment effects for blacks, Latinos, and whites and test whether these effects are largest for more segregated groups. Second, we use data at the level of the metropolitan area to test whether the car-employment effect for blacks relative to that for whites increases with the degree of black relative isolation from employment opportunities. We find the strongest car effects for blacks, followed by Latinos, and then whites. Moreover, this ordering is statistically significant. We also find that the relative car-employment effect for blacks is largest in metropolitan areas where the relative isolation of blacks from employment opportunities is the most severe. Our empirical estimates indicate that raising minority car-ownership rates to the white car ownership rate would eliminate 45 percent of the black-white employment rate differential and 17 percent of the comparable Latinbo-white differential.

Research SummaryThe rapid increase in the nation's incarceration rate over the past decade has raised questions about how to reintegrate a growing number of ex-offenders successfully. Employment has been shown to be an important factor in reintegration, especially for men over the age of 27 years who characterize most individuals released from prison. This article explores this question using unique establishment-level data collected in Los Angeles in 2001. On average, we replicate the now-common finding that employer-initiated criminal background checks are negatively related to the hiring of ex-offenders. However, this negative effect is less than complete. The effect is strongly negative for those employers that are legally required to perform background checks, which is not surprising because these legal requirements to perform checks are paired with legal prohibitions against hiring ex-offenders. However, some employers seem to perform checks to gain additional information about ex-offenders (and thus hire more ex-offenders than other employers), and checking seems to have no effect on hiring exoffenders for those employers not legally required to perform checks. Policy ImplicationsOne public policy initiative that has received considerable attention is to deny employers access to criminal history record information, which includes movements to "ban the box" that inquires about criminal history information on job applications. The assumption underlying this movement is that knowledge of ex-offender status leads directly to a refusal to hire. The results of this analysis show that policy initiatives aimed at restricting background checks, particularly for those firms not

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