“Ban-the-Box” (BTB) policies restrict employers from asking about applicants’ criminal histories on job applications and are often presented as a means of reducing unemployment among black men, who disproportionately have criminal records. However, withholding information about criminal records could risk encouraging statistical discrimination: employers may make assumptions about criminality based on the applicant’s race or other observable characteristics. To investigate this possibility as well as the effects of race and criminal records on employer callback rates, we sent approximately 15,000 fictitious online job applications to employers in New Jersey and New York City, before and after each jurisdiction’s adoption of BTB policies. Our causal effect estimates are based on a triple-differences design, which exploits the fact that many businesses’ applications did not ask about records even before BTB and were thus unaffected by the law. Our results confirm that criminal records are a major barrier to employment, but they also support the concern that BTB policies encourage statistical discrimination on the basis of race. Overall, white applicants received 23% more callbacks than similar black applicants and employers that ask about criminal records are 62% more likely to call back an applicant if he has no record. However, we find that the race gap in callbacks grows dramatically at the BTB-affected companies after the policy goes into effect. Before BTB, white applicants to BTB-affected employers received about 7% more callbacks than similar black applicants, but BTB increases this gap to 45%.

More on this topic

BFI Working Paper·Jul 11, 2024

Identifying Agglomeration Shadows: Long-run Evidence from Ancient Ports

Richard Hornbeck, Guy Michaels and Ferdinand Rauch
Topics: Uncategorized
BFI Working Paper·Jul 8, 2024

Firms’ Perceived Cost of Capital

Niels Gormsen and Kilian Huber
Topics: Uncategorized
BFI Working Paper·Mar 11, 2024

On Recoding Ordered Treatments as Binary Indicators

Evan K. Rose and Yotam Shem-Tov
Topics: Uncategorized