The rate of criminal punishment in the United States has had far-reaching economic consequences, in large part because people with criminal records are marginalized within the labor market.

Given these negative economic implications, federal, state and local officials have developed a host of policies to encourage employers to hire ex-offenders, with varying degrees of success. To inform policies and programs aimed at improving employment rates for ex-offenders, we examined employer preferences regarding policy options targeted to incentivize hiring individuals with one nonviolent felony conviction.

Below are a few key findings:

  • Worker Replacement and Fee Discounts Increase Hiring Prospects for Ex-Offenders:
    With a baseline policy of a discount on a staffing agency fee set at 25 percent of the hourly wage and post-conviction certification verifying adherence to company rules or code of safe practices, 4.3 out of 10 employers would consider hiring an ex-offender.
  • Tax Credits Have a Similarly Positive Effect
    With a baseline policy of a tax credit for 25 percent of a worker's wages (up to $2,500) after a worker has put in 120 hours and a post-conviction certification verifying adherence to company rules or code of safe practices, 5.9 out of 10 employers would consider hiring an ex-offender.
  • Employer Access to Previous Performance Could Factor into Hiring
    With the same baseline policy as considered for tax credits and a certificate of validated work performance history, that number rises from 5.9 out of 10 employers to 8.1 out of 10.
  • Employer Concerns in Hiring Ex-Offenders
    From a specific list provided in the survey, the top-cited concern was "any violent felony conviction," which was chosen as the most important issue by 53.3 percent of respondents and as the second most important issue by 24.5 percent of respondents.

Read the full article about incentivizing employers to hire ex offenders by Priscillia Hunt, Rosanna Smart, Lisa Jonsson, Flavia Tsang at RAND.