The Effect of Criminal Conviction on Income and the Trust "Reposed in the Workmen"

Using panel data on federal offenders we examine the effects of conviction on offenders' employment and income. First-time conviction reduces employment probabilities by 5 percentage points and has a significantly depressing effect on income (as much as -30 percent), especially for offenders whose pre-conviction jobs apparently require trust or who are sent to prison. Significant conviction effects on income are large compared with state-imposed penalties.