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Criminal Justice Involvement, Self‐Employment, and Barriers in Recent Public Policy

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  • Keith Finlay
  • Michael Mueller‐Smith
  • Brittany Street

Abstract

This study provides the first empirical evidence on the extent of self‐employment within the U.S. justice‐involved population. Using linked tax return and Criminal Justice Administrative Records System data, we find that 28 percent of individuals with criminal records are self‐employed. Justice‐involved individuals are 22 percent more likely to rely solely on self‐employment. The Paycheck Protection Program, passed to support small business during the COVID‐19 pandemic, initially disqualified those with a broad range of criminal histories. We find that close to 3 percent of recent sole proprietors had observable PPP disqualifying events based on initial eligibility criteria, with a disparate impact on Black and Hispanic business owners.

Suggested Citation

  • Keith Finlay & Michael Mueller‐Smith & Brittany Street, 2023. "Criminal Justice Involvement, Self‐Employment, and Barriers in Recent Public Policy," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(1), pages 11-34, January.
    • Handle: RePEc:wly:jpamgt:v:42:y:2023:i:1:p:11-34
    DOI: 10.1002/pam.22438
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    More about this item

    JEL classification:

    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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