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This paper examines the relationship between state-level corrections policies, incarceration rates, and labor force outcomes. Each state’s sentencing policy regime is coded according to its structure, determinacy, and the presence of three-strikes legislation. Using National Prisoner Statistics (NPS) and Current Population Survey (CPS) data for the period 1991-2015, I first estimate the impact of ... read morethese policy regimes on Black, Hispanic and White male incarceration rates, before estimating their impact on state-level labor force participation rates and employment rates of young Black, Hispanic and White men aged (i) 18 to 24 years old, and (ii) 25 to 34 years old. I also control for prior incarceration, prior unemployment, age, female employment and education are the control variables. I find that more structured and/or more determinate regimes have consistently higher incarceration rates, and effects are greater for Black men than for White and Hispanic men. Sentencing policies also have direct effects on labor market outcomes: three-strikes legislation is associated with lower Black male labor force activity, while determinate regimes see increased Black male labor force activity, relative to White and Hispanic male labor force outcomes.read less
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