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Criminal Justice Involvement, Self-employment, and Barriers in Recent Public Policy

Author

Listed:
  • Keith Finlay

    (U.S. Census Bureau, Washington, D.C.)

  • Michael Mueller-Smith

    (Department of Economics, University of Michigan)

  • Brittany Street

    (Department of Economics, University of Missouri)

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 selfemployment. 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 three 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, 2022. "Criminal Justice Involvement, Self-employment, and Barriers in Recent Public Policy," Working Papers 2210, Department of Economics, University of Missouri.
    • Handle: RePEc:umc:wpaper:2210
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    References listed on IDEAS

    as
    1. Devah Pager, 2003. "The mark of a criminal record," Natural Field Experiments 00319, The Field Experiments Website.
    2. Raj Chetty & Emmanuel Saez, 2013. "Teaching the Tax Code: Earnings Responses to an Experiment with EITC Recipients," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 1-31, January.
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    More about this item

    Keywords

    self-employment; criminal histories; federal support programs; Paycheck Protection Program; COVID-19;
    All these keywords.

    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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