TY  - RPRT
        AU  - Köllő, János
AU  - Boza, István
AU  - Ilyés, Virág
AU  - Kőműves, Zsófia
AU  - Mark, Lili Katalin
        TI  - How Do Firms Deal with the Risks of Employing Ex-prisoners?
        PY  - 2023/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16645
        UR  - https://www.iza.org/publications/dp16645
        AB  - We use linked employer-employee data to investigate a large sample of past and future prisoners in Hungary, 2003-2011. We first compare their jobs, focusing on attributes that can reduce the penalty the employer must pay for a mistaken hiring decision. Second, we study if employers insure themselves by paying lower wages to ex-prisoners. Third, we analyze whether the probability of the match dissolving within a few months is lower if the firm could potentially base its hiring decision on referrals. The composition of former prisoners' employment is biased toward easy-to-cancel jobs. In the unskilled jobs held by most of them, they do not earn less than future convicts, but a minority in white-collar positions are paid significantly less. Ex-prisoners' jobs are less likely to dissolve quickly if the hiring firm potentially had access to co-worker, employer, or labor office referrals.
        KW  - incarceration
KW  - reintegration
KW  - mobility
KW  - discrimination
KW  - Hungary
        ER  -