The Unintended Consequences of “Ban the Box”: Statistical Discrimination and Employment Outcomes When Criminal Histories Are Hidden

Abstract

Some employers' discrimination could be taste based-i.e., they simply do not like ex-offenders, and no additional information about individuals with records could change their feelings. This distinction does not alter the predicted effects of ban the box but does matter when considering alternative policies.2 This not only affects an individual's expected tenure on the job but increases potential financial costs to the employer. For instance, employers might worry about theft or that future violent behavior could result in a negligent-hiring lawsuit.

Do Ban the Box Laws Increase Crime?

“…We find that the enactment of a BTB law is associated with a 15.0 percent increase in property crimes for those ages 25-to-34 (Panel III, column 3) and a 15.8 percent increase in property crimes for those ages 35-to-64 (Panel III, column 4). These results are consistent with the hypothesis that BTB laws induce statistical discrimination by potential employers that reduce employment among low-skilled racial and ethnic minorities(Agan and Starr 2018;Doleac and Hansen, forthcoming).These findings could also conceivably reflect moral hazard by reducing the expected future costs of current criminal engagement. For instance,Bamberger and Donohue (1999) find that workplace discipline practices involving "last chance agreements," which govern discharged employees' reinstatement and reduce their costs of wrongdoing, can, via moral hazard, lead to more wrongdoing and discharges.…”

“…Parameter estimates on the control variables are available upon request. In all regressions, standard errors are clustered at the state-level (Bertrand et al 2004;Doleac and Hansen, forthcoming). One explanation may be that less educated Hispanics denied job opportunities due to BTB laws are more likely to be on the margin of crime commission than are similarly situated African American men.…”

“…Proponents argue that by withholding information about criminal histories from initial job 2 application screenings, employers may be more willing to hire those with criminal records because their perceptions of a criminal record may be changed by social engagement with the applicant (Doleac and Hansen, forthcoming;National Employment Law Project 2017). On the other hand, employers may react to less information on an applicant's criminal history by engaging in statistical discrimination against demographic groups with (perceived) higher rates of criminal arrests.…”

Forging Diversity‐Science‐Informed Guidelines for Research on Race and Racism in Psychological Science

“…New research suggests that Ban‐the‐Box policies, which have been lauded as a useful and creative solution to the problem of employment discrimination against people with criminal records, may inadvertently increase employers’ use of racial cues in hiring (Agan & Starr, ; Doleac & Hansen, ). Taking together these examples and the many more that are not mentioned here, it is clear that psychologists have the tools to produce the much‐needed information that can shape policies to effectively ameliorate racial inequalities and racist practices.…”

Punishment and Crime: The Impact of Felony Conviction on Criminal Activity

“…In the United States, approximately 8 percent of the adult population has a felony conviction and 3 percent of adults have been imprisoned (Shannon et al 2017). Evidence shows that irrespective of incarceration, a felony record can be a substantial barrier to employment and prompt recidivism (Agan and Starr 2018;Doleac and Hansen forthcoming;Holzer, Raphael, and Stoll 2006;Jackson and Zhao 2016;Pager 2003). Larcenies, in particular, comprise a sizable 11 percent of felony convictions and, similar to crimes in general, may result in incarceration (Rosenmerkel, Durose, and Farole Jr. 2009).…”