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Working Paper
Do Minimum Wages Really Increase Youth Drinking and Drunk Driving?
Adams, Blackburn, and Cotti (ABC) found that increases in minimum wages were positively related to drunk driving?related traffic fatalities for those ages 16 to 20. The hypothesized mechanism for this relationship?increased alcohol consumption caused by minimum wage?induced income gains?remains empirically unexplored. Using data from two national behavioral surveys and an identification strategy identical to ABC, we find little evidence that an increase in the minimum wage leads to increases in alcohol consumption or drunk driving among teenagers. These results suggest a much smaller set of ...
Working Paper
The effect of changing employers’ access to criminal histories on ex-offenders’ labor market outcomes: evidence from the 2010–2012 Massachusetts CORI Reform
Many regard the 2010?2012 Massachusetts Criminal Offender Record Information (CORI)Reform as a national model to improve ex-offenders? labor market outcomes. This reform prohibits most employers from inquiring about an individual?s criminal history on the initial job application (the ?ban the box? reform), and reduces employers? access to an applicant?s criminal record (the record-access reform). Using the CORI Reform as a natural experiment and a unique large confidential dataset linking individuals? CORI records with their unemployment insurance quarterly wage records, we examine the impact ...
Working Paper
Does changing employers’ access to criminal histories affect ex-offenders’ recidivism?: evidence from the 2010–2012 Massachusetts CORI Reform
This paper examines how changes in employers? access to job applicants? criminal histories affect ex-offender recidivism. We use extensive state administrative data on individual criminal histories spanning the 2010?2012 Massachusetts Criminal Offender Record Information (CORI) Reform, widely regarded as landmark legislation governing access to individuals? criminal information. The CORI Reform: i) banned inquiring about criminal history on initial job applications, and ii) broadened the list of groups eligible to use the state?s criminal records repository while simultaneously restricting ...
Working Paper
Punishment and Crime: The Impact of Felony Conviction on Criminal Activity
This paper uses increases in felony larceny thresholds as a negative shock to felony conviction probability to examine the impact of punishment severity on criminal behavior. In the theft value distribution between old and new larceny thresholds (“response region”), higher thresholds cause a 2 percent increase in the average larceny value within 120 days of enactment. However, within five years of enactment, response region average larceny values and rates decline 2 percentand 13 percent, respectively, in low-wage areas. Thus, under certain market conditions, smaller expected penalties ...
Working Paper
Information Production, Misconduct Effort, and the Duration of Corporate Fraud
We develop and test a model linking the duration of financial fraud to information produced by auditors and analysts and efforts by managers to conceal the fraud. Our empirical results suggest fraud termination is more likely in the quarter following the release of audited financial statements, especially when reports contain explanatory language, indicating auditors? observable signals reduce fraud duration. Analyst attention increases the likelihood of fraud termination, but the marginal effect beyond the first analyst is negative, possibly due to free riding and herding behavior impairing ...
Working Paper
Information Production, Misconduct Effort, and the Duration of Financial Misrepresentation
We examine the link between information produced by auditors and analysts and fraud duration. Using a hazard model, we analyze misstatement periods related to SEC accounting and auditing enforcement releases (AAERs) between 1982 and 2012. Results suggest that misconduct is more likely to end just after firms announce an auditor switch or issue audited financial statements, particularly when the audit report contains explanatory language. Analyst following increases the fraud termination hazard. However, increases (decreases) in analyst coverage have a negative (positive) marginal impact on ...
Working Paper
Black Mayors and Crime
Local elections are often contested on the grounds of public safety, but do elected officials have any power to curb crime? Black mayors have particular interest in the issue because Black communities are victimized by high levels of crime and fragile police community relations. Using data on elections of first-time Black mayors, I find that police forces add more Black officers, a finding that is especially true for mayors with executive authority. Officers arrest 48 fewer potential Black offenders per 10,000 Black residents for crimes where they have the ability to exercise discretion, a ...
Working Paper
Financial regulations and price inconsistencies across bitcoin markets
We document systematic differences in bitcoin prices across 11 different markets representing 26% of global bitcoin trade volume. These differences must ? due to the identical nature of all bitcoin ? result from characteristics of markets themselves. We examine differences across the markets and find that those which do not require customer identification for establishing an account are more likely to deviate from representative market prices than those which do. This implies that standard financial regulations, specifically know-your-customer regulations, can have a non-negligible impact on ...
Working Paper
The Effect of Undocumented Immigration and Border Enforcement on Crime Rates along the U.S.-Mexico Border
In the 1990s, the U.S. border led the nation in the decline of property-related crimes, while violent crime rates fell twice as fast in the U.S. as in the median border county. This paper asks how changes in undocumented immigration and border enforcement have played a role in generating these divergent trends. We find that while migrant apprehensions are correlated with a greater incidence of violent crime, they are not systematically associated with higher rates of property crime. Border patrol enforcement is associated with lower property crime rates but higher violent crime. ...
Working Paper
Financial Well-being and Inclusion of Justice Involved Populations: Evidence from the SHED
This study examines financial challenges faced by justice-involved individuals using 2023-2024 Survey of Household Economics and Decisionmaking data. Individuals with justice system contact experience substantially worse financial outcomes than those without criminal records, with disparities widening by severity of involvement. Compared to individuals with no prior records, those arrested but not convicted are 4 percentage points less likely to report doing at least okay financially, while formerly convicted as well as incarcerated adults are 15 percentage points less likely. Formerly ...