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Title: Entrepreneurship as a Response to Labor Market Discrimination for Formerly Incarcerated People
Resulting in 1 citation.
1. Hwang, Kylie Jiwon
Phillips, Damon
Entrepreneurship as a Response to Labor Market Discrimination for Formerly Incarcerated People
American Journal of Sociology published online (2024).
Also: https://doi.org/10.1086/729476
Cohort(s): NLSY97
Publisher: University of Chicago Press
Keyword(s): Black Studies; Discrimination, Job; Entrepreneurship; Incarcerated/Jailed Individuals, Previously or Formerly; Incarceration/Jail, Personal History of; Income; Labor Equality/Inequality; Labor Market Discrimination; Recidivism/Return to Crime; Work Reentry

This article examines entrepreneurship as a response to labor market discrimination. Specifically, we examine entrepreneurship as a career choice for formerly incarcerated individuals, a group of individuals who face substantial discrimination in the labor market. Using the US National Longitudinal Survey of Youth 1997 data, we find that formerly incarcerated people are more likely to become entrepreneurs compared to individuals who have never been incarcerated. We take advantage of a quasi-experimental setting by using the staggered implementation of “ban-the-box” policies in the United States to disentangle the underlying mechanism of how labor market discrimination affects formerly incarcerated individuals in their entrepreneurial choices. The findings suggest that formerly incarcerated Black individuals pursue entrepreneurship due to the discrimination they face from employers. We also find that entrepreneurship is a viable alternative career choice for formerly incarcerated people, yielding both higher income and lower recidivism rates. In addition to reporting robustness checks and addressing alternative explanations, we discuss theoretical, empirical, and policy implications.
Bibliography Citation
Hwang, Kylie Jiwon and Damon Phillips. "Entrepreneurship as a Response to Labor Market Discrimination for Formerly Incarcerated People." American Journal of Sociology published online (2024).